Project example: Commercial Due Diligence - Soda maker

Situation

• Leading refiller with fully-automated machines of 425g CO2 cylinders for home carbonators (e.g. SodaStream)
• Owned by Management, intention to fund international growth jointly with new external majority shareholder

Actions Proost Ventures

• Outline economics of parties involved in refill value chain (consumer, retail, logistics, bottlers, CO2 producers)
• Quantify price and margin structures in refill value chain, and penetration of home carbonators
• Assess sustainability of gross margin for CO2 refills
• Evaluate growth potential with in-depth projections of both volumes and prices. Assess business plan vs. market, competitive development, and int’l growth
• Detailed overview of private label and branded CO2 refills in retail chains in select W-European countries
• Determine client purchasing criteria for retailers for branded or private label CO2 refills

Results

• Successfully performed buy-side Commercial Due Diligence in 3.5 weeks during Covid-19 (incl. extensive expert, client and competitor interviews)

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