Commercials Due Diligence / Investment Feasibility Studies

Business Due Diligence of a Potential Investee Company

About the client

A global private equity firm wanted to evaluate an investment in a kitchenware and kitchen appliances company in India.

Project Objectives

Core objective was to undertake a business due diligence of the company entailing assessment of the brand and its growth potential. Key strategic questions answered included:

  1. What is the current brand strength and can it be leverage for category extension?
  2. How satisfied are existing channel partners with the brand and their willingness to partner the brand to further growth?
  3. How is the brand faring in comparison to its competitors?
  1. Mapping the kitchenware market in India to provide category trends and market dynamics. This included:
    • Size, structure and future outlook, market segmentation
    • Growth drivers and challenges and upcoming trends
  2. As-is-analysis of the company’s existing business to understand:
    • Current brand positioning
    • Key brand strengths and weaknesses
    • Product price mix and range depth and width
    • Strength of existing channel partners and their growth potential
  3. Mapping key competitors in the market:
    • Major players–international / national /regional and the intensity of competition
    • Relative position of major competitors on price, product, penetration, brand equity
    • Geographical nature of these brands – pan India, regional or city based
  4. Value chain analysis:
    • Perception / satisfaction of the channel partners for the brand vis-à-vis competitors
    • Existing trade terms and margins structures across various channels