The many benefits of having an expert on your side
When it comes to buying an operating poultry farm, a whole team of professionals will typically be involved and managed by the Poultry Farm Broker during the process. So, what does a Poultry Farm Broker do in the first place?
As a Poultry Farm Brokerage, we can tell you no two deals are alike, but there are enough similarities that if you negotiate 10 to 50 of them a year, you know the pitfalls and how to overcome them. In general a Poultry Farm Broker is paid a percentage of the sales price to represent the buyer and keep them from making mistakes that can add up to hundreds of thousands of dollars on an average transaction. You many not need a Poultry Farm Broker if you know the answer to the following top 10 questions:
Are you comfortable negotiating a multi-million dollar transaction?
How much earnest money do I put down and how do I legally enforce my contract to keep from losing it to the seller?
What amortization should I use to project the farm's cash-flow in order to verify I'm not overpaying?
What age farm should I purchase to gain equity and not lose?
Should I use a poultry bank, SBA, FSA, or the secondary market?
What upgrades are required and who typically pays for them?
Should I purchase all of the equipment under a different contract and how does this effect my taxes and basis?
As apposed to the physical age of the farm, what equipment has been replaced, was it replaced correctly, and what is it's value?
Does the farm comply with integrator, Department of Environmental Quality, and other required regulations in order to grow poultry?
If during the purchase my title opinion has an encroachment or boundary line dispute what are my options?
Working without a broker is the same as representing yourself in court without an attorney. You can do it successfully if you have the experience. When buying direct from farmers, it will be assumed that you can look after yourself in a market with hundreds of costly pitfalls. We guarantee you will be glad you are working with a poultry broker after you view the first contract! At American Poultry, we work almost exclusively by referrals from previous clients. By providing value far exceeding our cost, we earn our business everyday.