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. We leveraged our standard commercial due diligence frameworks and tailored this to the investors’ needs and target 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.
Key components:
- Market size & growth drivers: Analysis of the fermentation market by ingredient and facility type, current capacity, and demand forecasts, differentiating between own capacity and that provided by target.
- Competitors: Evaluation of the top three competitors, focusing on business models, technology, sustainability, financing, scale, integration, and partnerships.
- Pricing & utilization: Benchmarks for pricing and utilization specifically for food fermentation and other targets.
- Commercial feasibility: Inclusion of the business plan, unit economics, growth drivers, and the foundational commercial & technical assumptions.
- Business model: Analysis of the target’s business model against various target industry practices.
- IP & regulatory: Examination of IP status, its relevance to the business model, and regulatory and incentive frameworks within the target’s geography.
- Commercial team: Assessment of the key commercial team members, focusing on background, qualifications, experience, and their capacity to execute the business plan.
- Pipeline: Evaluation of the quality of the target's existing and potential customers and projects.