AMR assisted Provimi in making a major strategic move into the Mexican animal feed market
Client and project overview
Provimi, a major European animal nutrition business, wanted to build a presence in the Mexican market and had identified a potential acquisition target. AMR was asked to provide input on the achievability of the business plan in the light of numerous risk factors.
- What is the structure of the Mexican animal feed market and how is it changing (including industrialisation)?
- How have external factors impacted the target’s performance?
- What are the target’s sources of competitive advantage and how sustainable are there?
Highlights of AMR methodology
- AMR developed a sophisticated understanding of the external factors influencing the target’s performance, including underlying demand, industrialisation, macro shocks, regional variation and competition
- AMR combined this with a thorough review of the target’s internal data (including pricing) and customer base
- AMR’s work proved critical to allowing the deal to go ahead, based on the key finding that recent volatility in the target’s performance was caused by one-off, external factors and the underlying performance was highly stable
- AMR analysis of customer preferences also identified clear value-creation potential
- Based on clear recommendations from AMR, the business was able to perform significantly ahead of budget in year one
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