Our client is one of the world’s leading banks and financial service institutions. It had recently set up a private equity fund in India and had identified an investment opportunity in one of India’s leading pharmaceutical glass packaging companies. It requested Cedar’s help to conduct a commercial and technical due diligence of the opportunity and assist in making the investment decision including potentially realigning the valuation based on our assessment.
Cedar approach to commercial due diligence combines its deep expertise of assessing markets, players, and trends with its ability to assess businesses and their operations leveraging the Balanced Scorecard.
- It developed a deep understanding of the Indian pharmaceutical industry and its packaging trends. This included assessing demand of major pharma players in the industry and the critical criteria in selecting packaging suppliers.
- Cedar conducted a detailed commercial due diligence of the investment target analysing financials, product portfolio, sales & marketing, channels, key processes, and organizational framework.
- It conducted a technical due diligence by its team of technical advisers assessing its manufacturing assets and potential gaps.
- It assessed global packaging trends form glass to plastics and the potential impact of these trends on the Indian opportunity.
- It assessed the valuation of the target, and recommend realignment based on its assessment of the market and opportunity.
Cedar’s commercial due diligence recommended an investment in the target with a realigned valuation which was successfully done. Subsequently Cedar’s client exited with an attractive valuation. The company went on the become one of the largest glass companies in the world with annual revenues ~$ 1 Billion.