The challenge
Our client, a leading global investment fund, approached us for commercial due diligence on a potential 8-digit EUR investment. The focus was on a target specializing in fermentation.
We conducted a 4-week comprehensive commercial due diligence on the target with our consulting and expert team, leveraging our standard commercial due diligence frameworks and tailoring them to the investor’s needs and the target’s situation.
Our commercial analysis encompassed an in-depth review of the fermentation sector, focusing on market size, growth drivers, the competitive environment, and commercial viability, including a detailed examination of the target’s business model.
approach
Our project team – one Project Manager, two Consultants, and one Technical Lead – leveraged our in-house knowledge base and network of 2,500+ global experts. Management interviews and desk research let us challenge the data room, and in most due diligence projects we also perform a site visit.
Our commercial analysis covered eight key components:
Analysis of the fermentation market by ingredient and facility type, current capacity, and demand forecasts, differentiating between own capacity and that provided by the target.
Evaluation of the top three competitors, focusing on business models, technology, sustainability, financing, scale, integration, and partnerships.
Benchmarks for pricing and utilization specifically for food fermentation and other targets.
The business plan, unit economics, growth drivers, and foundational commercial and technical assumptions.
Analysis of the target’s business model against various target industry practices.
Examination of IP status, its relevance to the business model, and regulatory and incentive frameworks within the target’s geography.
Assessment of key commercial team members, focusing on background, qualifications, experience, and their capacity to execute the business plan.
Evaluation of the quality of the target’s existing and potential customers and projects.
Our unique combination of classical due diligence approaches and deliverables, together with in-depth market understanding and expert views, was combined into a final deliverable: a detailed DD report and an executive summary for the Investment Committee.
The impact
The evaluation gave the client an in-depth understanding of the investment opportunity and its associated risks, directly informing the fund’s decision-making. The investment was still being assessed and presented to the Investment Committee at the time of publication.
Explore our due diligence case studies
Our consulting team based out of Europe and 2500+ expert team located in 60+ countries cover the full AgriFood Tech value chain globally.
