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Vendor Due Diligence for a leading Healthy Snacking player

Sector:

Situation

The Owners of a leading player in UK healthy snacking co-manufacturing asked FSA to provide Commercial, Strategic and Operational Vendor Due Diligence as the impulse-driven sector was beginning recovery from COVID-19 lockdown, and the business itself was seeking to demonstrate the benefits of a change in strategy

What we did

FSA agreed a 2-phased approach with the Owners and Management of the company, given uncertain timescales:

Phase 1 focused on a comprehensive assessment of market segment and channel dynamics by combining purchased scan and panel data with FSA Retail Audit and web-scraping data and FSA network industry interviews:

  • FSA developed a detailed and robust forward model of post-COVID recovery which Management used as an input to their 3-year plan and sale process communications
  • FSA issued a Phase 1 report in order to assist the Client in ongoing negotiations with a potential buyer

Phase 2 focused on the completion of Commercial and Operational due diligence and included:

  • Assessment of projected market performance by the Client’s key customers and target segments;
  • Development of a detailed capacity model of the current and planned Client business
  • Top-down/bottom-up risk/opportunity analysis of a business in flux, demonstrating strong grounds for confidence

Outcome

FSA flexibly accommodated shifting scenarios and timescales to deliver a high-quality report

The Client identified a potential buyer who retained Food Strategy Associates to assist in (buy-side) diligencing a complementary acquisition