Partners:
Managing Partner of Private Advisory, Vilnius, Lithuania
Associate Partner, Stockholm, Sweden
Client
ConfidentialOur client, a prominent Fast-Moving Consumer Goods (FMCG) brand operating across various markets, approached CIVITTA to support them with their growth strategy. The client has established a dominant market presence within multiple and diverse food categories; however, it faced the strategic challenge of continuing its growth trajectory, given the intensifying competition in the core markets.
Over a couple of months and in the strong cooperation between CIVITTA and the clients’ teams, we have jointly developed the strategy encompassing both organic growth through existing products and brands and growth through mergers and acquisitions (M&A) in new categories or brands.
The client encountered a common challenge faced by major industry leaders: the emergence of numerous smaller competitors eroding their market share and heightened competition from international brands, exacerbated by growing inflation and reduced consumer purchasing power. This situation necessitated a swift assessment of strategies to safeguard their current position and facilitate future profitable growth.
Our approach to M&A growth included a pivotal market evaluation at both category and subcategory levels. We meticulously analysed the size and growth potential of each opportunity, factoring in trends, disruptions, and the threat of private-label competition. This assessment provided a clear understanding of each opportunity’s viability and growth potential. Additionally, we evaluated the client’s capabilities and assets within each segment, identifying potential synergies that could be harnessed for growth.
In parallel, our assessment of M&A growth involved a thorough analysis of potential targets. We assessed how these targets aligned with the client’s strategic objectives, considering factors such as sales focus and product portfolio. Financial aspects, including revenue size and EBITDA, were evaluated to ensure the viability of potential acquisitions. The combination of our market assessment and target identification efforts led to the identification of the prioritised M&A opportunities.
We partnered closely with the client’s internal teams to assess organic growth. This collaboration leveraged the combined strengths of our CIVITTA experts and the insights of the client’s representatives. Working in tandem, we devised organic growth opportunities grounded in market realities and the client’s unique insights into the markets where they operate.
M&A and organic growth opportunities were combined into a comprehensive strategy document.
This document not only outlined the growth roadmap but also served as a communication tool at the Group level, ensuring alignment and understanding across the organisation.