In this case study a Private Equity Client engaged CPL Business Consultants to provide detailed insights into specific plant extract ingredients sold into dietary supplements and health products. The aim was to assess the competitive positioning and to identify peers for a potential acquisition. CPL’s report provided market information which enabled the client to to make an informed decision on how to proceed and listed companies potentially suitable as post-acquisition bolt-ons.
CPL’s client was interested in investing in a company with a dominant position in niche plant extract ingredient markets. There was little published information on these specialist markets. CPL was engaged to support the client’s due diligence, specifically looking at the markets, product positioning, pricing and competition. CPL was able to complete this work within a compressed timescale.
CPL’s comprehensive ~200 page report covered the current and predicted markets for the companies 6 main product groups and profiled ~50 direct competitors, from the North America, South America, Europe and Asia. The report provided information on the comparative positioning and pricing of competing products and included a list of potential bolt-on acquisitions. The report supported the client in making an informed decision on how to proceed in the process. An outline of the report contents is shown below.
Plant Extract Ingredients Due Diligence
Executive Summary
The Executive Summary was provided as a document and spread sheet (with market predictions) and included the following information:
- Market Summary
- Volumes
- Values
- Value Growth (CAGR)
- Current
- Predicted
- Products by Ingredient Category
- Raw Material
- Manufacturer
- Product Name/Brand
- Lead Active Ingredient
- Key Features
- Specifications & Formats
- Claims Made/Product Descriptions
- Scientific Substantiation
- Positioning & Applications
- Current Applications
- Potential Applications
Players and Products
~50 companies competing with the target company’s six main plant extract ingredients were profiled. Each profile included the following information:
- Company Overview
- Branded Products
- Other Products
- Research & Clinical Trials
- Identified Customers & Pricing
Markets for Plant Extract Ingredients
Markets data were provided for 6 main specialist (niche) product categories:
- Market Size and Growth (CAGR)
- Europe
- Americas
- Asia
- Plant Extract Ingredient Applications
- Dietary Supplement Applications e.g.
- Immunity
- Cardiovascular
- Cognitive
- Other Health Applications
- Dietary Supplement Applications e.g.
- Regional Trends
- Europe
- Americas
- Asia
- Forms e.g.
- Powder
- Extract
- Pricing
In addition to this due diligence project on plant extract ingredients, CPL has completed numerous projects in Nutraceuticals and Health Ingredients, for example Strategic Planning for a Nutraceutical Plant Extract Business. Other projects include Voice of Customer Survey of Natural Extracts and Preservatives Company, Market Potential for Supercritical CO2 Extraction and Acquisitions in Flavouring. Have a look at our PowerPoint Introduction and Brochure describing deliverables, differentiators and case studies. Eight case studies can also be reviewed.