Business case
Our client, a major agrifood group, was looking to sell one of its subsidiaries, which develops, manufactures and markets products for the disinfection of livestock buildings and equipment, the treatment of drinking water and overall livestock health across a number of countries.
Product approval in the agrochemical sector is costly and highly regulated. For example, in Europe, products are heavily and increasingly regulated under the European Chemical Agency and the general global transportation guidelines. Such regulatory constraints create an expensive operational environment, with a tendency for consolidation. Demand for livestock chemical products is driven by developing countries (particularly China and other Asian countries) due to increasing demand for livestock products and the further industrialisation of agriculture.
During the engagement, we reviewed combined financial statements, suggested normalised financial figures, assisted the management team with the preparation of the business plan, prepared a sell-side due diligence report and answered the buyers’ due diligence requests.