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Vendor Due Diligence of Halo Foods

Sector:

Situation

FSA were asked by Nimbus Private Equity and Laurens Spethmann Holding (LSH), to provide Vendor Due Diligence (Commercial, Strategic and Operational) on Halo Foods Limited, a leading player in UK co-manufacturing, branded and retailer brand healthy snacking.

What we did

FSA worked with the Owners and Management of the company to develop and evidence a clear and robust investment thesis while minimising demands on Management time through close collaboration with other advisors. During the 2 month assignment, the FSA team evidenced the stability of the core business and the robustness of projected rapid segment growth, by:

  • Constructing a comprehensive view of the market and supplier landscape by combining purchased scan and panel data with FSA Retail Audit data and FSA network industry interviews
  • Compellingly evidencing growth forecasts: by building a detailed forward model of post-COVID recovery; through senior-level customer interviews and by commissioning and analysing focused consumer research
  • Developing a detailed capacity model of the current and planned Client business
  • Supporting the bid process through timely input to the Information Memorandum
  • Presenting a clear and structured narrative to potential investors, supported by Q&A session

Outcome

Nimbus Private Equity and LSH successfully sold the business to Peak Rock Capital at the high end of valuation aspirations, within the target timeframe, achieved despite COVID impacting core sales.

John Tague, Managing Director, for Halo Foods said “Having the food sector know-how and consulting rigour of FSA on-board both helped and challenged Halo management through the process. FSA ask the right questions and get to the real issues straight away because they know what they are talking about. We learnt a lot about our business and appreciated the value of having senior FSA partners work with us throughout the process to evaluate our plan. You cannot put a price on the value that comes with insight, experience and the ability to know how food businesses really operate.”