In this case study, a fertiliser and speciality chemicals company engaged CPL Business Consultants to find potential strategic partners to grow its biopesticides business. Subsequently, the client entered a successful strategic partnership.
CPL’s client had developed its biocontrol products over several years, investing time, effort, and money to find, produce and register the products. It decided to reduce its exploratory and research work in biopesticides, focussing instead on marketing the products. Within 5-6 years, the marketing group exceeded its sales targets and continued to invest in new products. However, despite this success, it was clear that biopesticides were unlikely to become a significant business or a core activity.
The client sought to develop the business further as a joint venture or partnership. It engaged CPL to find a small to medium-sized company in biopesticides which could benefit from cross-selling the client’s products. This ideal strategic partner would also have facilities to manufacture the current products as well as additional future products. In addition, a partner might bring new markets and new products to the client’s portfolio.
CPL’s task was to identify and assess biopesticide companies that might become strategic partners with the client and the potential fit with the Client.
Finding and Qualifying Strategic Partners in Biopesticides
CPL conducted a comprehensive search to find suitable strategic partners in biopesticides. All companies we judged to have even the slightest realistic possibility of joining together with the client were invited to respond to an initial contact. This included many of the companies active in the biopesticides business over the past years and additionally several new companies and potential entrants.
Most companies that expressed positive interest were investigated further. Discussion ensued with all interested parties to ensure that the companies that expressed interest did so with sufficient knowledge not to waste the client’s time later. There is a cost in time, effort and money in arranging and having meetings with potential partners, and we were hoping to reduce or eliminate what were likely to be ‘time-wasters’.
In addition, we sought to obtain as much information as possible about the exact current state of each company, its resources, products and plans so that we might assess how suitable it might be as a partner for the client.
Potential strategic partners were assessed on the following criteria:
- Company Characteristics
- Skills and Knowledge Base in Biopesticides
- Suitability for the Client
We obtained as much information as possible about each potential partner company and its attitudes, plans etc. This information and an evaluation of each company’s pros and cons were included in the report, which is outlined below.
Biopesticides Strategic Partners
- Background and Objective
- Methods for Evaluating Biopesticide Partners
- Initial Contacts with Potential Partners
- Further Discussions
- Evaluation of Potential Biopesticide Partners
- Results and Biopesticide Partners Evaluation
- Replies from Potential Biopesticide Partners
- Evaluation Factors
- Evaluation Scores
- Summary of Evaluations
- Strategic Recommendations
Biopesticide Company Strategic Partners Considered
- 22 Biopesticide Companies, for each company:
- Pros for Partnership
- Cons for Partnership
- Business Relationship
- Schedule for Next Steps
Other Biopesticide Companies
- Additional Potential Strategic Partners in Biopesticides
Biopesticide Companies to Follow-Up
CPL has worked on many projects in biopesticides, for example a product review, and acquisition targeting study. You can find further examples of our work on biopesticides on this site. Please look at our PowerPoint Introduction and Brochure describing deliverables and differentiators. You can also review eight case studies.