Impact Story
Identifying and Pressure Testing Hypotheses for Growth for #1 Consumer Products Company In Its Category
Our client is the #1 consumer brand in the US in its category. With sales approaching $1 billion, and a dominant market position, the client was looking into several avenues to strategically drive growth while staying close to its core competence and product segments.
Agamya worked diligently to collaboratively develop hypotheses for inorganic growth. The Agamya team worked closely with the client's corporate development and product development leadership to identify several segments and sub-segments for growth. Our involvement entailed detailed market study and interviews, as well as rigorous analysis of market and competition.
The collaboration with the client highlighted and confirmed the potential of two critical areas of growth (cleaning products for pets and consumers), while also reaffirming the importance of staying close to core competence of global sourcing with an asset light footprint.
Agamya worked diligently to collaboratively develop hypotheses for inorganic growth. The Agamya team worked closely with the client's corporate development and product development leadership to identify several segments and sub-segments for growth. Our involvement entailed detailed market study and interviews, as well as rigorous analysis of market and competition.
The collaboration with the client highlighted and confirmed the potential of two critical areas of growth (cleaning products for pets and consumers), while also reaffirming the importance of staying close to core competence of global sourcing with an asset light footprint.
Situation
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The #1 consumer brand in its category (~$1 billion in revenue) had been exploring various avenues for growth, including investments in new product development, product line extensions, as well as mergers and acquisitions.
Since the company was short-staffed on corporate development, the client engaged Agamya to help refine the growth hypotheses around growth through M&A. The objective of our engagement was to pressure test the hypotheses, and identify, source and screen targets for acquisitions. |
Our Approach
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Agamya conducted a rapid assessment of the industry including adjoining segments to developed a detailed understanding of the growth opportunities. The assessment entailed primary and secondary research, competitive analysis, and product segment analysis. Furthermore Agamya utilized its proprietary CRM system to identify several targets for acquisition, and worked collaboratively with the client to rapidly shorten the list.
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Results
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As a result of the rapid initial assessment and ongoing screening of several potential targets, the client was able to confirm core components of its growth strategy: i) for cultural, competence and risk management reasons, it was essential for the client to acquire only those targets that did not manufacture their own products; ii) cleaning products for pets and consumers that had a highly differentiated value proposition AND also proven efficacy (e.g., FDA clearance) was essential; and iii) strong vision, especially, around product design was core to the success of any acquisition for the client.
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