We defined opportunities for expansion of the value chain and a list of suitable takeover targets for a FMCG company.
Due to the financial crisis and the huge competition from international corporations, the market share of an important regional FMCG company with an annual income of over €100 million stagnated. As the company had a surplus of cash, the owners were looking for opportunities to expand their business.
The company was seeking advice on which were the most suitable companies for a takeover from the same or related industry or value chain.
We defined possible ways for the business expansion of the client:
- We reviewed the value chain in the region
- Based on an in-depth analysis we defined that the most suitable companies for business expansion were larger distributors of the same or related trade groups (from the existing portfolio of the FMCG company)
- We defined a list of appropriate takeover targets and evaluated the synergy effects of the possible takeovers