CNH Industrial is a heavy equipment manufacturer known for its successful history of mergers and acquisitions, including legendary brands like Ferrari. However, five years ago, the company was facing challenges in tapping into the startup scene within the agtech industry.
To address this issue, CNH turned to one of its seasoned executives, Michele Lombardi. Lombardi, with a background in business development, was tasked with building a pipeline of successful transactions from scratch. He acknowledged the limited reach and network of the company but took a proactive approach by engaging with venture capital firms to connect with startups in the agtech space.
Through ongoing conversations and networking efforts, Lombardi and his team of 14 employees successfully facilitated 12 deals over the last five years. These deals included acquisitions and minority investments in various technological areas such as farm management software, AI-powered drone imaging, satellite navigation, and tractor companies.
The success of Lombardi’s team comes at a time when venture investment in agtech has been challenging, leading to opportunities for companies like CNH to invest in new technologies. Lombardi emphasized the current favorable environment for corporate venture capital, highlighting the potential to support worried entrepreneurs and identify affordable yet innovative ideas.
Reflecting on the agtech industry’s past euphoric phase, Lombardi noted that the current downturn may lead to a more robust landscape by filtering out inexperienced investors and startups lacking sustainable ideas. He expressed optimism about the industry’s future strength and the opportunities for growth and collaboration.
Lombardi’s extensive experience at CNH across different global markets has been instrumental in his current role leading the company’s investment and M&A team. With a focus on accelerating CNH’s technological roadmap, Lombardi distinguishes corporate venture activities from traditional venture capital investments by emphasizing strategic alignment with the company’s goals.
In evaluating startups for investment or acquisition, Lombardi involves employees from various CNH organizations to assess the potential impact on the industry. Beyond financial transactions, his team actively engages with startups to foster collaboration and innovation, leveraging CNH’s global presence to stay updated on market developments.
Lombardi values personal interactions with entrepreneurs, preferring face-to-face or video calls to gauge their authenticity and willingness to collaborate. By observing how individuals respond to questions and show vulnerability, Lombardi gains insights into their character and compatibility for potential partnerships.
Overall, Lombardi’s approach to maximizing M&A success at CNH involves building strong relationships with startups, assessing strategic fit with the company, and prioritizing collaborative opportunities that drive industry development. His focus on personal connections, strategic alignment, and long-term impact underscores CNH’s commitment to innovation and growth in the agtech sector.
