When assessing company worth, many factors are considered: future growth potential, business risks, and cost of capital. But in the world of seed companies, your germplasm<\/strong> is often your most valuable asset. What is the potential of your genetic material? Is it worth $5 million, $10 million, or even $1 billion<\/strong>?<\/p>\n\n\n\n If a potential buyer asks, \u201cWhat\u2019s the value of your germplasm?\u201d \u2014 can you confidently answer? More importantly, can you back up your response with data<\/strong>?<\/p>\n\n\n\n An experienced plant breeder can examine your program\u2019s data and quickly judge how well it has been managed. If your data is organized, accessible, and relational, you\u2019re in a strong position. If not, you may face a devaluation.<\/p>\n\n\n\n Imagine a buyer asks to see the data for your Top 10 breeding lines<\/strong>.<\/p>\n\n\n\n Which breeding program would you want to inherit?<\/p>\n\n\n\n It\u2019s the difference between saying, \u201cTrust me, it\u2019s all there,\u201d and confidently stating, \u201cHere it is \u2014 would you like anything else?\u201d<\/p>\n\n\n\n In a real example, a cucumber breeder in the U.S.<\/strong> started at a new company and discovered that all legacy data was stored in binders and obscure paper records \u2014 not even Excel spreadsheets! While the information may have been valuable, it was unusable<\/strong>.<\/p>\n\n\n\n This kind of poor data management doesn\u2019t just frustrate new hires \u2014 it increases onboarding time, reduces productivity, and lowers the overall company valuation<\/strong>.<\/p>\n\n\n\n As a breeder, you should be able to instantly generate reports on:<\/p>\n\n\n\n You may even need to prove there\u2019s no patent infringement<\/strong>. A robust, searchable database with standardized nomenclature<\/strong> allows you to retrieve every piece of data linked to a variety name or number \u2014 instantly.<\/p>\n\n\n\n If you can\u2019t do this, potential buyers will factor in the risk and cost of data cleanup<\/strong>, and that affects what they\u2019re willing to pay.<\/p>\n\n\n\n If your database is strong, relational, and well-maintained<\/strong>, the value of your germplasm rises dramatically. That, in turn, boosts the overall valuation of your business.<\/p>\n\n\n\n Investing in software de cultivo de plantas<\/strong> may seem like a cost, but it often pays back 10:1 \u2014 or even 100:1<\/strong> \u2014 over time. Proper data management also has a compounding effect<\/strong>, building more value each year.<\/p>\n\n\n\n If you\u2019ve got good material \u2014 and you have the data to back it up<\/strong> \u2014 buyers will notice. And they\u2019ll be more willing to invest in your seed company<\/strong>.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Have you ever thought of selling your company, or might you be part of a merger? One consideration that comes into play is your data, and its mismanagement, or relative inaccessibility, could actually devalue your company. There are many aspects that go into the valuation of a company, some of which include future prospects of the business, the risks of the business and the cost of capital. But for any seed company, it\u2019s the germplasm that\u2019s worth the most. What\u2019s the potential of that genetic material? Is it $5 million? $10 million? Maybe $1 billion?<\/span><\/p>\n\n\n\n If a potential buyer asks the value of your germplasm, are you prepared to give a response, and do you have the data to back it up? Any experienced breeder can look at the data and get a sense of how the program has been managed.<\/span><\/p>\n\n\n\n As an example, a potential buyer asks to see the data associated with the Top 10 lines. The breeder with Company A has to sort through piles of Excel sheets and then transfer the data to another sheet so it\u2019s all in one place. The breeder with Company B hits a few keystrokes and automatically pulls up the Top 10 lines and all associated data. Now if you\u2019re the buyer, which breeding program do you want to inherit? It\u2019s a \u201cTrust me, it\u2019s all there\u201d situation versus being able to say \u201cHere it all is. Do you need anything else?\u201d<\/span><\/p>\n\n\n\n If the data isn\u2019t very useable, it\u2019s going to cost the buyer. For instance, we met a cucumber breeder in the U.S. who had just started with a company. When he arrived, he found all the data in old binders and cryptic sheets \u2014 not even in Excel! The data was not in a form that allowed him to use it. This was just this year, not back in the 1970s. The information there might be valuable, but it\u2019s hard to decipher and use.<\/span><\/p>\n\n\n\n As a breeder, you should be able to easily pull requested data (all parents or all populations) and show it to a potential buyer. You might also have to prove there is no patent infringement. The best way to prove this is to have a highly relational database where nomenclature is standardized and one can search by variety name or number and everything associated is called up. As a new owner, if this step is ignored, the penalties could end up costing you more than what you paid for the company \u2014 not a comforting thought.<\/span><\/p>\n\n\n\n If you have a strong, well-organized database, this increases the value of your germplasm and genetic material. When you consider all this, the cost of plant breeding software is minimal; it has the potential to pay back 10:1 or maybe even 100:1. Properly managing your data in a highly relational database has a compounding effect over time.<\/span><\/p>\n\n\n\n If you have good material and you have the data to back it up, companies will line up to buy it.<\/span><\/p>\n\n\n\n (First published on SeedWorld.com, January 2018<\/em>)<\/span><\/p>\n\n\n\n Find out more at: agronomix.com<\/a><\/p>\n\n\n\n
\n\n\n\nCan You Prove the Value of Your Germplasm?<\/h3>\n\n\n\n
\n\n\n\nA Tale of Two Breeders<\/h3>\n\n\n\n
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\n\n\n\nData Disorganization Comes at a Price<\/h3>\n\n\n\n
\n\n\n\nMake Your Data Work for You<\/h3>\n\n\n\n
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\n\n\n\nGood Data Management Increases Business Value<\/h3>\n\n\n
![\"Selling](\"https:\/\/agronomix.com\/wp-content\/uploads\/2018\/10\/dreamstime_1311156-20250502-145635-1024x683.jpg\")
\n\n\n\nFinal Thoughts: Make It Easy for Buyers to Say Yes<\/h3>\n\n\n\n
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