COMMERCIAL DUE-DILIGENCE - PLANT-BASED FOOD

BUYER DUE-DILIGENCE: PLANT-BASED MEAT

SITUATION

  • The client, a venture capital fund sought to evaluate the commercial and marketing performance of a target company operating in the plant-based food sector.

  • The target, a leader in the meat substitutes market, competes in a dynamic and growing category with established players across key European markets.

  • The fund required a comprehensive due diligence assessment to understand the target’s brand strength, competitive positioning, retail performance, advertising effectiveness, and international expansion strategy, to assess its potential for long-term growth and profitability.

PROJECT OBJECTIVE

  • Conduct a detailed commercial due diligence to evaluate the target company’s performance and its competitive position in the market.

  • Assess the target’s brand equity and differentiation within the plant-based category, as well as its effectiveness in key retail channels and advertising campaigns.

  • Analyze the target’s internationalization strategy in focus markets and determine its potential to drive future growth and market penetration.

  • Provide actionable insights into the market dynamics, the target’s historical financial performance, and the sustainability of its long-term EBITDA margins, to support the fund’s investment decision.

WHAT WAS DONE

  • Held detailed management interviews to understand the target’s strategic priorities, operations, market positioning, and expansion plans.

  • Analyzed market and scan data for the plant-based category, focusing on market size, growth trajectories, and pricing strategies in key geographies.

  • Reviewed retail KPIs such as distribution, rate of sale, SKU performance, and pricing benchmarks, providing a clear view of the target’s retail competitiveness.

  • Assessed the advertising and promotion (A&P) strategy, benchmarking the target’s spend and ROI against key competitors to evaluate efficiency and effectiveness.

  • Evaluated the target’s internationalization strategy, identifying key opportunities and risks in its planned expansion across major European markets.

  • Analyzed historical financial performance to identify growth drivers, assess profitability trends, and understand the impact of input cost inflation on margins.

RESULTS DELIVERED

  • Delivered a comprehensive due diligence report with insights and strategic recommendations, outlining the target’s growth potential and areas for operational and strategic improvements to maximize investor value.

  • Offered clear recommendations on prioritizing key international markets, aligning efforts with the most viable opportunities, and identifying strategies to mitigate risks in highly competitive regions.

  • Presented a detailed scenario analysis to project potential sales and market share outcomes under various growth strategies, providing the client with a realistic view of the target's future trajectory.

  • Provided a full evaluation of the management’s long-term strategic plan and target objectives in sales and gross margin, leveraging insights from analysis of companies at a similar stage of evolution and projected market trajectories.

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