Good Fruit Grower

January 15

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www.goodfruit.com Good Fruit Grower JANUARY 15, 2015 37 360.333.4044 Casey Schoenberger Mount Vernon, WA Dramm Corporation Manitowoc, WI • U.S.A. www.FishFertilizer.com Extremely high levels of available Calcium & Phosphorus Natural Fish Fertilizers for Organic & Sustainable Crop Production BERRIES VINEYARDS ORCHARDS There are four primary ways to compete: 1. Become a high-quality producer in a niche or premium sector. Organics are at present the most attractive opportunity given premium pricing and market growth ratios. Growing a variety with a smaller customer base willing to pay a premium price is another option. 2. Consider a joint venture with other mid-sized players in the value chain. As the market continues to consolidate, the type, farm, economics and partners will need to be carefully thought through, and deal structure and economics may need to change. 3. Consolidation—buy-side. Some mid-size players believe, and rightfully so, that they have the know-how to become larger players, but they lack capital. Capital, both equity and debt, is available for growth and acquisition. Certain struc- tures exist to access the capital without giving up full control or putting the core business at risk. 4. Consolidation—sell-side. The last option is to sell the business either to a competitor or a financial buyer. Selling to an industry competitor most often means selling 100 percent and giving up control. Selling to a financial buyer can be structured as the sale of a majority, with the owner retaining a minority stake and day-to-day operating control. In a period of industry consolidation, good and viable options exist for those business owners who proactively think through their opportunities and can hon- estly assess their own competitive advan- tages vis-à-vis other market participants. The most at risk business owner is the one who ignores market dynamics. It may be that a business is well positioned for now and in the future, but a careful analysis and a proactive approach should at least be given consideration. • Michael Butler is chairman and CEO of Seattle-based Cascadia Capital, a diver- sified, boutique investment bank serving both private and public growth companies around the globe. Butler leads the firm's Energy and Applied Technology and Food and Agribusiness practices.

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