Powering a US dietary supplements acquisition
Posted by | Fuld & Company
A Midwest-based private equity firm with over $3 billion in assets under management required a detailed analysis of the expanding US dietary supplements market to inform their decision on a potential acquisition.
Objective
The PE firm wanted to understand:
- the growth trajectory and potential value of the sub-sectors within the dietary supplements market, including weight management, digestive health, and muscle recovery
- the competitive landscape and key industry players
- product innovations and a financial performance review
Solution
Working to a tight deadline to meet the firm’s schedule for making an acquisition decision, Fuld carried out targeted and in-depth research into the US dietary supplements market, analyzing:
- Growth trajectories of sub-categories within the dietary supplements markets. This identified areas of projected growth and provided actionable insights.
- Market trends including potential drivers and challenges in the market. Specifically, we looked at emerging trends and purchasing patterns resulting from demographic shifts, and the growth in social media and influencer marketing. This provided a comprehensive overview of the factors influencing the dietary supplements market capturing the headwind and tailwind, technology, buyers shifting demographics, and buying behaviors.
- Competitive landscape, including the identification of 50 key players in the US dietary supplements market including competitor descriptions, value propositions, product portfolios, and recent developments. This provided a comprehensive overview of competitor activities to support the firm’s acquisition decision.
Outcome
Fuld provided deep insights into the dietary supplements market and its major players, including identifying and presenting the five key product segments with the highest growth potential, within a very short timeframe.
Fuld’s competitive benchmarking provided structured comparisons combined with detailed analysis of the key players to enable the PE firm to evaluate the acquisition target benchmarked against industry leaders.
The PE firm, backed by Fuld’s comprehensive data and analysis, was able to make an informed investment decision regarding the acquisition of the target company. Fuld’s research not only delivered a comprehensive understanding of the US dietary supplements market but also equipped the private equity firm with essential tools for strategic decision-making.
Conclusion
It was very satisfying to contribute to clients’ portfolio’s growth through our valuable insights, and efficient project delivery. Now this initial project has developed into an ongoing annual retainer relationship between the Private Equity firm and Fuld. The project highlighted the value of thorough market analysis and a comprehensive assessment of the competitive landscape to Private Equity firms and Investment Banks to guide them through market complexities and contribute to successful investment decisions.
