Providing M&A Support for New Business Development Group
The Situation
A major publicly-traded beauty and cosmetics company was looking to expand its portfolio. The internal M&A team needed additional expertise to screen potential acquisition targets and assist with deal process. Accordion was engaged to manage ongoing work streams in connection with multiple potential acquisitions and assist with acquisition due diligence, business plan development, and investment committee process.
Services
Project Management Oversight
Actionable Business Analytics
Stakeholder Reporting & Strategic KPI Enhancement
The Execution
Over a period of two years, we deployed a team of consultants, ranging from Director to Associate, with M&A and private equity experience in retail and consumer products, serving as in-house M&A advisors. Our team managed the buy-side due diligence process and collaborated with deal teams of over 50 members to complete various diligence work streams.
- Developed profiles on target companies that provided senior management with summary of business overview, products and pricing, and brand story.
- Negotiated non-binding term sheets with deal structure and valuation ranges in exchange for an exclusive period to complete the diligence process and develop detailed business plans.
- Ran all diligence meetings, gathering necessary information and completing associated ad-hoc analyses; created due diligence tracker, process timeline, and developed diligence summary reports.
- Led regular internal and external deal review and issues calls.
We assisted the corporate M&A team in developing benchmarks with internal brands that included # of doors, average productivity (retail sales) per door, margins, and EBITDA.
- Constructed a dynamic financial model to forecast 5 – 10 year roll-out strategy; the P&L buildup included retail sales, net sales, distributor margins, and pipes (i.e., excess inventory shipped) by each distribution channel and geography.
- Helped develop detailed 5 – 10 year business plans for acquisition targets that consisted of roll-out and expansion strategy for each channel and geography by doors and productivities, retail and net sales growth charts, valuation bridges, and sensitivity analyses.
The Results
Accordion supported facilitate four acquisitions and ongoing investment committee support. We helped the client manage multiple complex deals and successfully facilitated from start to finish M&A process for four acquisitions in 2014. We ensured all work streams were executed efficiently and provided support in development of monthly investment committee materials.