Background: Understanding Market Potential in the Petcare Industry
Our client, a prominent private equity firm, sought to evaluate the commercial viability of acquiring a US-based pet treat supplier. With rapid growth and evolving consumer preferences in the petcare sector, the firm needed a comprehensive understanding of market dynamics across North America and Europe.
The key question was: “What are the market opportunities, competitive risks, and consumer trends that will impact the success of this acquisition?”
Approach: Commercial Due Diligence to Support Strategic Investment Decisions
To answer this question, we conducted a detailed due diligence process, including:
Market Sizing and Dynamics:
• Assessed market size, growth rates, and geographic trends across six key markets.
• Identified emerging product categories and evolving consumer preferences.
Competitive Landscape:
• Mapped key competitors, their market positioning, and strategic strengths.
• Evaluated barriers to entry and potential disruptors in the pet treat space.
Consumer Insights:
• Conducted a survey of pet treat buyers across North America and Europe.
• Analysed purchasing behaviours, product preferences, and spending patterns.
Expert Validation:
• Held interviews with market experts to validate findings and uncover strategic insights.
Outcome: Investment and Strategic Recommendations Backed by Market Evidence
Our analysis revealed significant growth opportunities in the pet treat market, highlighting the most attractive product segments and routes to market by geography. Key deliverables included:
• Market Opportunity Mapping: A detailed evaluation of growth areas and competitive risks.
• Strategic Recommendations: Tailored guidance on value creation opportunities post-acquisition.
Armed with these insights, the client was able to make an informed investment decision and develop a strategic roadmap for the target company’s future growth.