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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