In this case study, an investment group engaged CPL Business Consultants to conduct an investment overview of a diversified ingredients company. CPL completed a comprehensive assessment of the potential target company and its competitors across a range of product categories. At the end of the project, CPL outlined options for increasing the target company’s value and highlighted potential M&A targets. This information was used to inform the investment thesis and supported productive discussions with the company’s management.
The objective of this study was to assist our client in its assessment of a diversified ingredients company, with a view to investing in it. In particular, the client sought to understand the target’s business and product categories as well as the competitors and markets for these products. The aim was to provide sufficient information for an investment thesis to ensure productive discussions with the companies management on the benefits and potential of external investment.
Firstly, CPL reviewed the diversified ingredients company’s portfolio of products, which included segmenting the different product categories, identifying competitors and reviewing any substitution threats. CPL then researched 15 of the key players in relevant markets, providing an overview of each and highlighting the growth strategies they had followed. This information was used to illustrate the strategic roadmap which could be followed.
Furthermore, CPL collated supporting information on players and products and trends in the market. Based on all the information collected, CPL then provided the client with options for adding value to the diversified ingredients company as well as suggestions for potential bolt-on acquisitions for inorganic growth. An outline of the report is included below.
Diversified Ingredients Company Investment Overview
Overview of Diversified Ingredients Company
- Ingredient Products
- Human Health & Nutrition Ingredients
- Animal Health & Nutrition Ingredients
- Competitors
- Market Dynamics
- Substitution Threat
Sweetener Ingredients Overview
- A brief overview of ~50 sweetener products currently used for foods, by type.
Case Studies
Learnings from CPL’s experience in the b2b ingredients business on the evolution of companies and what made them successful.
- In-Depth Profiles of 15 B2B Ingredient Companies and their Strategies
Options to Add Value to a Diversified Ingredients Company
- CPL’s Strategic Framework for Ingredients Companies
Potential Bolt-On Acquisitions
- Suggested Synergistic Bolt-on Acquisition Targets
Recent Market Trends and Developments
Trends and developments for major players, emerging companies and disruptive technologies.
- Relevant Trends in the B2B Ingredients Markets
- Bulk & Intense Sweeteners, and Fibres
- Fermentative Sweeteners
- e.g. Reb-M, Allulose
- Oligosaccharides and Polyols
- e.g. IMO (Isomaltooligosaccharides) , Erythritol, AMO (Animal Milk Oligosaccharides)
- Fermentative Sweeteners
- Proteins e.g.
- Plant-Based, Algae, Insect, Mycoproteins, Microbial, Cultured Meat
- Starches e.g.
- Modified Starches, Clean Label Alternatives, Next-Generation Native Starches
- Bulk & Intense Sweeteners, and Fibres
Additional Projects
In addition to this diversified ingredients company investment overview, CPL has worked on several other due diligence projects in the ingredients industry e.g. Texturizing Company Due Diligence, Animal Feed Additives Due Diligence, and Feed Additives and Diagnostics Due Diligence. Have a look at our PowerPoint Introduction and Brochure describing deliverables, differentiators and case studies. You can also review eight case studies.