Acquisition Due Diligence

Many companies in the CPG industry are turning to acquisitions to gain quick entry into new markets and drive sustainable growth. In fact, between 2012 and 2014, CPG acquisitions increased by more than 20 percent. But, without highly detailed information, including the right data and insights, acquisition decisions can made with an incomplete understanding of the attractiveness and stability of the company or brand – and result in acquiring companies overpaying by as much as 25 percent or underbidding and losing the ability to acquire the asset altogether. 

Effectively executed demand due diligence helps companies avoid acquisitions that fall short of expectations and also alerts management that they may need to increase a bid to win in a competitive environment. Knowing where to look for new growth and thoroughly evaluating an acquisition target’s future demand potential are two keys to implementing an effective acquisition strategy. 

This report, “Precise and Strategic Demand-Side Due Diligence is the Secret Sauce for Successful CPG Acquisitions,” explores the multiple challenges companies face when they attempt to evaluate the worth of a potential asset as well as how to best maximize opportunities when they’re considering acquiring a CPG company or brand to drive new growth.  

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