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.
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:
- What is the current brand strength and can it be leverage for category extension?
- How satisfied are existing channel partners with the brand and their willingness to partner the brand to further growth?
- How is the brand faring in comparison to its competitors?
- 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
- 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
- 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
- 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