In this case study a leading Private Equity fund engaged CPL Business Consultants to provide technical due diligence for a feed additives and diagnostics company. Using its extensive experience and broad networks in animal health and nutrition, CPL was able to give the client a clear understanding of how the portfolio contributed to a defensible competitive advantage.
Initially, CPL reviewed the Information Memorandum, sharing its initial thoughts and working hypotheses. It then reviewed the acquisition candidate’s products, specifications, and production processes. The aim was to answer important questions such as:
- How are these products differentiated and how is value added?
- How sustainable is their advantage and what is the defensibility?
- Is there potential to add further value?
CPL completed a comprehensive technical review of proposed feed additives and diagnostics pipeline products and a review of the IP portfolio from a scientific/commercial perspective. This included a detailed assessment of how the products stacked up versus key competitors on key performance parameters.
Also, CPL participated in management and led meetings submitting questions relating to the above topics. Finally, CPL provided synthesized conclusions on the strength of acquisition candidates overall value proposition and the value proof.
The contents of the final report (delivered in a slide deck) covered the following topics:
Due Diligence in Feed Additives and Diagnostics
- Product Offerings
- Customer Benefits
- Differentiation and Proof
Overview of Feed Additives and Premixes
- Margins and Volumes
- Types of Additives, Definitions and Classifications
- Functional Benefits, Performance and Welfare Outcomes
Feed Additive and Diagnostics Portfolio Review
- Mycotoxin Risk Management
- Mycotoxin Binders
- Mycotoxin Inactivators
- Gut Performance Management
- Premixes and Feeding Concepts
- Specialty Feeding Concepts
- Vitamin and Mineral Premixes
- Feed Preservation
- Silage Inoculants
- Feed Acidifiers
- Diagnostics Products
- ELISA tests
- Lateral Flow Tests
- Dip Slides
- Clean-Up Columns
- Laboratory Testing Services
Detailed Technical Review and Analysis
- Characterisation of Products
- Components and Product Composition
- Technologies and Modes of Action
- Applications and Product Claims
- Product Claims and Positioning
- Potential Line Extensions
- Means of Differentiation
- Performance Claims
- Value-Added and ROI
- Efficacy Trials Data
- Company Trials
- Independent Trials
- Intellectual Property
- IP Review
- Similar Innovations
CPL has worked on many projects as experts in animal feed including, for example, on compound feed, additives and premixes, feed additives, and the competitive landscape in Serbia. Have a look at our PowerPoint Introduction and Brochure describing deliverables, differentiators and case studies. You can also review eight case studies.