U.K.-based genetic services provider Xelect is offering a new due diligence service for aquaculture, aimed at giving potential investors and purchasers access to a new level of information about the value of the companies that they are interested in.
Xelect said that with the value of transactions increasing significantly in recent years, its new BioAudit enables investors to evaluate broodstock, which are “at the heart” of an aquaculture company’s value, and that such knowledge will give them greater confidence in the quality and sustainability of the biological capital, and also the ability to make more informed decisions.
The BioAudit combines specialist genetics skills with industry know-how to provide independent and confidential genetic audits, alongside biological due diligence. It has already been used to provide advice to the sovereign wealth fund of a Middle Eastern country, and for a major seabass and seabream transaction.
Xelect’s CEO Ian Johnston explained that every BioAudit project that Xelect does is “completely bespoke” for the client, but typically includes a site visit, interviews with key personnel, and a detailed genetic analysis of the broodstock at its laboratory.
“Customers get a detailed report and presentation, highlighting any risks from inbreeding or past genetic management, and an assessment of whether there is sufficient genetic diversity for selective breeding to improve key commercial traits – all key factors for the future sustainability and profitability of the business,” he said.
“The team here are truly unique, with a highly specialized set of skills and backgrounds. This means that, as well as a genetics audit, we can offer a wide ranging biological due diligence service, covering feasibility of production targets, a biosecurity review, environmental and animal welfare checks and analysis of harvesting and processing practices. We think it’s quite a game changer for M&A,” Operations Director Tom Ashton added.
Established in 2012, Xelect provides genetic services to aquaculture operations all over the world. Its core business is focused on managing breeding selection services and its staff today includes aquaculture specialists, fish biologists, physiologists, quantitative geneticists, and computer scientists.
In February, it launched a new rapid response suite of services called “Xelect Express,” which provide quick access to the laboratory’s expertise for genotyping, pedigree assignment, gene expression, ploidy, and sex determination. This offering is positioned between the company’s comprehensive Xelect Elite breeding program and its basic Xelect Direct services.
Photo courtesy of Xelect Genetics
