Strategic Diligence of Potential Acquisition of Bakery and Speciality Fats Company

Routes-To-Market Strategy

Client Challenge

The client was a leading agribusiness and food company with operations across the globe. It sold products and services at numerous points along the value chain. It was a market leader in the bakery and specialty fats segment in the country. It was willing to sell its specialty fats business and move out of the product segment, however, it wasn’t willing to sell its manufacturing facility.

 

Our Approach

 UC STRATEGY followed the following approach in order to complete the project in a span of ten weeks:

  • Context building
    • Understand business
      • Understand product segment
      • Market size, growth and share of business by product and customer segment
      • Understand pricing and margins.
    • Preliminary customer analysis
      • Initial feedback on brands in specialty fats segment.
    • Target and customer analysis
      • Obtain targets perspective
        • Sales performance
        • Customer relationships
        • Acquisition scenarios
        • Business plan.
      • Detailed customer analysis
        • Trends in customer segment
        • Customer purchase criteria
        • Switching behavior and implications
        • Feedback on target brand.
      • Strategic fit and synergy evaluation
        • Assess strategic fit
          • Develop strategic scenarios
          • Evaluate implications of each scenarios
          • Develop framework to evaluate the impact of implications.
        • Evaluate synergies
          • Determine various operational synergies
          • Revenue synergies
          • Cost synergies
          • Evaluate probability and pay off for client in each scenario
          • Conclude on strategic fit
          • Comment on risks/upsides.
        • Valuations
          • Detailed valuations
            • Detailed financials forecast
            • Valuation of target on a stand-alone basis
            • Valuation on a combined basis
            • Overall project evaluation.

 

Our Impact

The client received an in-depth due diligence on the potential target and was given a decision whether to acquire/target the company.

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