Acquisition support - consumer products

Global confectionery company planning major acquisition

Key question

• Should we acquire the target company? How can we maximise value creation through synergies?

Approach

• IAMCO analysed market and media data to determine the attractiveness of the market and of the acquisition target. We then collected detailed information on all aspects of the target’s business to enable a robust valuation, and developed the acquisition case, including valuing the base business and synergies, and building post-acquisition business plans. During due diligence, we led the commercial stream, revising the valuation as appropriate, and then supported the combined management post acquisition to develop more robust business plans.

Findings

• The acquisition would result in our client becoming global leader in confectionery, and in the attractive functional confectionery segment.

• An attractive level of cost and revenue synergies was available.

Recommendations

• The acquisition should be pursued on account of a high level of potential to create value.

• Following the initial recommendation to pursue the acquisition, the assignment was a collaborative one, in which we supported valuation and post-acquisition planning over the course of a year, rather than delivering a distinct set of recommendations.