Business case
Our client, a major wine and spirits producer, acquired a family-run online retailer specialising in the sale of whiskies. The transaction involved a significant carve-out of old and rare whiskies that formed part of the sellers’ personal collection.
One of the main challenges in the due diligence process involved gaining comfort over the remaining inventory as the sellers’ private collection was integrated in the target’s inventory systems. We benchmarked against our client’s existing online retail businesses and attended the stock count.
During our engagement, we performed financial due diligence as well as a purchase price allocation (PPA) of the target’s main intangible assets. For the PPA, we assessed the value of the target’s brands, customer relationships, web platform and inventory using multiple valuation methods.