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.

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.

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.

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.