Commercial due diligence for the acquisition of a leading frozen vegetables & fruits manufacturer and exporter in the region
Situation
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One of the leading food processing companies in the Middle East is set to acquire one of the top frozen vegetables & fruits manufacturers and exporters in the Egypt
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The company requires advisory services on the commercial due diligence and transaction support for the acquisition
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Conducted a high-level assessment of the global export markets, market trends, and demand dynamics
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Evaluated the company’s internal capabilities, competitive advantages, and the country’s edge and manufacturing and export
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Reviewed historical financial performance, understanding cost structure, elements and drivers, revenue drivers, trends and customer base, working capital structure, liabilities and utilized assets
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Liaised with external advisors and experts for technical due diligence
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Assessed the company strategy and proposed recommendations on certain strategic directions to support growth plans
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Forecasted the 5-year financial performance based on the existing expansion plans for exports taking into account variations in volumes and prices in light of market conditions, ability to grow customer base, inflation trends, and labor requirements
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Identified and assessed risks as well forecasting multiple financial performance scenarios and evaluating the expected returns (NPV, IRR, payback, etc.)
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Conducted a valuation exercise to value the company under different scenarios based on DCF and multiples
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Developed two deal structures and terms and conducted scenario analysis with the expected return metrics for the transaction
Contribution
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5-year financial forecasts for the proposed business plan
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Company valuation, proposed transaction structure and scenario analysis