Business case

Strategic and financial due diligence on a cosmeceutical manufacturer

Situation: Transactions
Transaction preparation & execution

Context

Our client, a corporate venture capital fund, wished to acquire a minority stake in a molecule manufacturing company to obtain access to one of the company’s molecules developed for cosmeceutical applications. They required strategic and financial due diligence.

Key Takeaway

The longevity market is fast expanding, and the target’s proprietary technology positioned it at the top of the range for both consumer health products and skincare. As our client already had a partnership with a critical player in the supplement industry, its investment would be key in the launch of cosmeceutical products. Key areas of consideration were (i) the purpose of the funding, which was to be used mostly to develop the marketing strategy, and (ii) the lack of physical shopping locations, which are crucial for the retail of skincare products.

Accuracy Role

We were engaged to perform the strategic due diligence, review the business plan, and provide the financial due diligence.

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