Stamford Partners strategy Consultants, Better Advice Better Decisions

 

Acquisition support


Management considering buyout of mid-sized, public UK ethnic food company



Key question


  • How robust are the business plans of our target?


Approach


  • Stamford Partners reviewed the historical business performance and future business plans of the target’s eight divisions. We analysed market data by category and gathered information to explain drivers of market growth. We also assessed competitor financial performance, compared this with the target and understood competitors’ strategies. Using these insights, we projected market and company growth and adjusted business plans accordingly.


Findings


  • All core businesses were sound, with limited downside.

  • Management had underestimated both the potential to grow the chilled ready meals business and the requirement for investment to meet core customers’ strategic needs.

  • Management forecasts for the other seven divisions were consistently at the high end of the reasonable range.


Recommendations


  • The chilled foods business could support a higher valuation.

  • Projections for all other divisions should be lowered.