terra ceia farms expansion plan
TRANSCRIPT
E-TAP Program, Kenan Institute, UNC-CH
Ashwini Rathi, 2nd Yr. MBA, KFBS
12th December 2014
TERRA CEIA FARMS – EXPANSION PLAN
AGENDA
Introduction
Terra Ceia Farms
The Opportunity
Our Approach
Validating Assumptions
Understand Investors
Substitute Analysis
Final Deliverables
Expansion Locations
Finances
Business Plan
INTRODUCTION
• Terra Ceia Farms
• Based in Pantego, Beaufort County
• Carl van Staalduinen – 3rd Gen.
• Grow Flowers, Corn, Soya Bean
• Nursery & Mail Order Business
• The Opportunity
• Flower production in 1 site
• Expand Production to 3 Sites
ASSUMPTION VALIDATION
• Demand Assumptions:
• Additional demand?
• Current customers buy more?
• Supply Assumptions:
• Current supply?
• Validation:
• Met current customers
• Confirmed additional demand and procurement
UNDERSTANDING INVESTORS
• Elizabeth Basnight got us in touch with Self-Help Credit Union
and Carl got his banker to meet with us
• We discussed about various financing instruments, loan types,
financing terms, hurdle rates, DCRs, interest rates, LTVs, etc.
SUBSTITUTE ANALYSIS
• Are we better off growing something else?
• List of crops growing in North Carolina vs per acre profits for
comparison
FINANCING STRATEGIES
• The BIG question: was how much to finance?
• Scenario models: 15 yr. vs 13 yr. lifecycles
• How much funding to raise, from where at what interest rates?
• Potential partnerships, collateral for loans, etc.