Evaluation of a potential partnership on operating a food processing facility in Egypt
Situation
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A multi million dollar food processing company in the MENA region is planning to start a new processing facility in Egypt and is evaluating a partnership offer with a private equity firm
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Reviewed the partnership proposal terms and structure as well as the facility’s location and size, export potential, investment requirements and income share split
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Reviewed the proposed financial plan, identifying revenue streams, forecasted sales volume and expected prices, understanding cost structure, elements and drivers, revenue drivers, trends and customer base, working capital structure, capex requirements and expected return metrics
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Assessed the managerial and financial capabilities and strategic vision of the private equity firm as well as their performance on similar engagements
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Evaluated the company’s strategic growth options and provided recommendations on whether to proceed on this partnership or explore different options
Contribution
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Recommendation on proceeding with the partnership, areas of negotiation, and risks associated