AV04 Animal Feed Additives Due Diligence

Objective

The objective of this study was to assist our client in its due diligence of a potential acquisition target, particularly to help in reviewing the information memorandum and other company data to appraise the prospects of the company. The company is a producer of feed additives and premixes, serving customers in its home country and neighbouring countries in the Balkans.

Method

CPL visited the target company to view its operations and interview its management, allowing it to assess its strengths and capabilities. CPL surveyed 100 farmers to assess their views of the reputations of the target company and its competitors and how they position themselves. We used public databases to support our findings, reporting on the size and growth of the animal feed and animal production industries in the Balkans, and company websites and contacts to inform our client of the target company’s competitive landscape.

Following completion of this project, CPL’s client invested in the target company.

Table of Contents

Market Drivers

    Regional Drivers for Feed
    Animal Protein Consumption
    Regional Farming Structure

Market for Compound Feed

    Europe and Regional Compound Feed Market Estimates

Raw Material Supply

    Supply Sufficiency
    Raw Material price Volatility
    Raw Material and Feed Prices

Market for Premixes and Additives

    Technical Introduction and Definitions
    Market Drivers
    Europe and Regional Premix and Additives Market Estimates
    Importance of IP
    Target Company’s Strengths and Weaknesses
    Potential to Target New Markets

Competitive Environment for Feed, Premixes and Additives

    Portfolios
    Profiles
    Feed Capacity
    Performance
    Benchmarking
    Survey Findings

Assessment of Target Company’s Products and Capabilities

    Product Portfolio

      Premixes
      Supplemental Mixtures
      Complete Feed
      Additives

    Client Base
    Risk of Dependency on Key Clients
    Process Strengths and Capabilities
    Pricing Strategy
    Margin Dynamics
    SWOT Analysis
    S&D and New Product Development

      R&D
      Patents

Business Plan Review

    Development to 2020
    Revenue Forecast
    Gross Margin Forecast
    EBITDA Forecast
    CPL’s View of the Business Plan

Opportunities and Threats

    Opportunities
    Risk Factors

Appendices

Appendix I: Home Country Competitors

    15 Company Profiles

Appendix II: Regional Competitors

    8 Company Profiles

Appendix III: Farmer Survey Respondents

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