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Buy-side Diligence of a Specialist Meat Alternatives Co-Manufacturer

Sector:

Situation

Our client is a private equity investor, evaluating a potential investment in a specialist meat alternatives co-manufacturer. They asked for our help in assessing the management’s sales and P&L forecast, in particular addressing the scale and likelihood of new customer contract wins, and scope for a broadening of product range

What we did

  • Reviewed and analysed documents provided by management including 3-year plan and detailed sales pipeline
  • Purchased and analysed retail scan data to determine size and trajectory of target markets and customer contracts
  • Interviewed key management, developed views on plan achievability, proposed product range and proposed price points, new product development strategy and pipeline and market positioning based on existing competitive environment
  • Visited and assessed key production facility, identified alternative solutions to current bottleneck, developed high-level assessment of operations, opportunities and risks, views on capital adequacy based on forecast volumes and product range, views of timing and execution of operational plan in the context of the sales plan

Results delivered

Articulated clear and quantified view of opportunity and timeline including strengths/risks/mitigations/upsides to existing business and projected expansion, proposed approach to developing a new plan and further risk assessment. Client opted not to pursue investment