FMCG company fosters its direct to customer presence with M&A

Challenge

A FMCG company had decided in its strategy to move closer to its customers. This would enhance profitability by cutting middlemen but would require more customer interaction and understanding in order to improve its services. While the company was analyzing its options together with August, it became clear that M&A would be the best way to achieve this strategic goal.

Brave the future

August supported the company in several ways during the whole M&A process. In the beginning, the business model and goals for acquisition were crystallized. Once the target company was decided,  commercial due diligence followed where market and customer understanding were deepened, and the target’s position analyzed. In addition, the position of a NewCo and its sources of competitive advantage were defined and concrete synergy levers and potential risks were mapped as an input for valuation.

August continued to support the company by defining an integration approach where the target’s unique aspects were treasured but which also enabled sufficient management and synergy realization for the acquirer.  In addition, we supported the integration work by assisting in creating an integration program and starting the integration process immediately after the closing.

Impact

The company succeeded in its strategic goal to increase its direct to customer presence via M&A. In addition, thanks to the thorough due diligence phase, the synergy potential and risks of the acquisition were well understood in the company. This informed a well-grounded decision for the management to proceed with the acquisition. The concrete integration support from August also created a good foundation for realizing the projected synergies.