We were asked by our client – a European leader in CPG with a strong presence in the VMS category – to perform targeted diligence of a UK VMS business. The request was to understand likely outlook for the category inc. the COVID impact, how well regarded the business was vis a vis competitors, and to take a view on the robustness of management’s projections.
What we did
Working to a tight timeline we did the following:
- Attended management presentations
- Attended presentations of the vendor due diligence report completed by 3rd party advisors
- Conducted anonymized interviews with 8 experts that had close knowledge of the category and asset
- Purchased and analysed data on the VMS category in the UK and its performance over the past three years
- Performed store audits to understand the target’s retail presence and that of its most relevant competitors
- Analysed competitor financials to gauge relative size and recent performance
- Analysed unconventional sources of data to get a view of long-term performance of the VMS category and establish the COVID impact
- Analysed Euromonitor data sets
- Analysed D2C performance including website visits, retention rates and customer acquisition and lifetime value
We brought new insights to our client that went directly to value, but also confirmed many of the hypotheses raised at the outset. The client went on to purchase the target and was highly complimentary of our work and role in the transaction.