Strategic Due Diligence & Value Creation

Our Services > Private Equity > Strategic Due Dilligence & Value Creation Identification of skin care, food, and toiletries products wholesaler

Client Overview


    The client wanted to assess the profitability of the acquisition target, and identify value creation strategy to help the acquisition target to release it business potential.

    The acquistion target is a skin care, food, and toiletries product wholeseller in Hong Kong, with 38% of revenue from higher trade custoemrs and 62% of revenue from general trade customers (e.g. medical shops). The client wanted to assess the profitablity of the acquisition target and identify value creation strategies to help the acquisition target to release its business potential.

    Complications

    • The acquisition target wanted to expand the business but there was limited traction.
    • The acquisition target had low staff morale and performance.

    How Embarkley & Company Has Helped

    • Embarkley conducted a market analysis on different industries including skin care and food in both the China and Hong Kong markets.
    • Embarkley conducted comparable company analysis to understand financial metrics to make a fair comparison with the acquisition target.
    • Embarkley provided a series of value-creation activities and synergies to maximize investors and shareholders value.

    Outcome

    • Embarkley provided a series of value-creation activities which could create gross revenue of HK$ 43.74 M.
    • Embarkley accessed the market and company potential
    • It will be invested by HK$ 12M to get 80% of equity share
    How can we help you?
    To discuss how our team can help your business achieve tangible results, please