Case Study: Commercial Due Diligence, Agrichemicals

Our client needed to decide whether or not to proceed with an investment into a fast-growing Chinese agrochemicals company.

Case Study: Commercial Due Diligence, Agrichemicals

Our client needed to decide whether or not to proceed with an investment into a fast-growing Chinese agrochemicals company.

Contact us

Situation

  • US-based private equity investor evaluating an investment in a Chinese agrochemicals company (the ‘Target’)
  • Target seeking funds to launch new crop protection product lines

Approach

Stenvall Skoeld’s approach focused on assessing key factors including:

  • Industry and market segment attractiveness
  • Suitability of the Target’s strategy
  • Achievability of the Target’s financial forecast

Our research and analysis include

  • Review of public and subscription-based research and industry publications
  • In-depth management interviews and manufacturing site visits
  • Interviews along the Target’s value chain
  • Interviews and discussions with industry experts
  • Analysis of government and industry statistics
  • Analysis of financial and commercial information from the Target

Result

  • Industry analysis showed strong growth ahead but changing competitive landscape favoring larger and more advanced competitors.
  • Target had overestimated growth and margin potential of new product lines.
  • Due diligence gave strong indication that Target would not come close to achieving its strategic and financial goals.
  • Discrepancies between Target’s claims and Stenvall Skoeld’s interview findings raised doubts about management integrity.
  • Client decided not to invest but to pursue more attractive opportunities in the sector.

Our Clients

Client Services

Our advisory services support clients when selling or buying a business, establishing joint ventures and partnerships, securing financing, valuing a business, or navigating other M&A related issues involving China and Southeast Asia.

=

Sell-side Advisory

We manage global sales processes to help clients secure maximum value when selling a company or divesting a business.
=

Buy-side Advisory

We help client identify, screen, initiate, and convert acquisitions that are synergistic with their strategies.
=

Strategic Advisory

We provide strategic advisory services that help clients define the best path before launching specific M&A initiatives.
=

Partnerships

We help clients identify and structure joint ventures, strategic partnerships, corporate venturing models, minority stakes, etc.

How can we help you?