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Operational Due Diligence on Freshcut Foods on behalf of Flywheel Partners

Situation

A UK private-equity business asked Food Strategy Associates to provide Operational Due Diligence for a leading UK-based prepared vegetable supplier supplying both foodservice chains and B2B customers. We were asked to assess the operational performance, capability and capacity of the business ahead of a potential acquisition.

What we did

During the month-long assignment, we undertook a number of activities to provide our client with a clear view on the operations of the business, including:

    • Assessing the performance of the business on core operational “hygiene factors” around Health & Safety, Quality, Service, Cost, People and Business Processes
    • Assessed whether the capacity of the business across the plan period would be sufficient to meet the demand plan. This involved:
      • Building a complex, bottom-up capacity model that captured the utilisation of every process and packaging asset in the production flow across time to understand potential breaches
    • Determined whether planned CAPEX in management’s plan was aligned with capacity requirements, assessing both the magnitude and timing of the investment
    • Provided a view on associated labour requirements and whether the target was adequately competitive within its local labour market

Results delivered

Our client successfully acquired the business in August 2023. Both our client and the management team stated they would use our report as a basis for operational improvement going forward