Technical and Commercial Due Diligence, Financial Valuation and Strategic Business Plan of a Seed Company For Potential Investment and Acquisition

November 13, 20230

Our client, a leading agro-chemical conglomerate expressed interest in making a potential investment in a seed enterprise for diversifying their business into the Indian seed industry. The client company, through its internal understanding of the market, chose a seed company and engaged Sathguru to conduct techno-commercial due diligence, and financial valuation which helped the client understand the technical and financial viability of the enterprise for potential investment. Sathguru further developed a growth strategy and business plan for driving growth in the industry post-acquisition.

Situational Analysis

Our client, a leading agrochemical conglomerate is focused on diversifying business by expanding into the seed sector and wanted to understand the technical and business profile of an enterprise for potential investment and a roadmap for further growth prospects with the acquired entity.

Scope/Approach/ Recommendation

Sathguru conducted an in-depth analysis of the Indian seed industry for acquainting the client with the trending dynamics of the industry. Sathguru critically analyzed the portfolio of the seed enterprise by assessing the strength of the portfolio, crop diversity, product efficiency and vis-à-vis key competitors for each of the crops. Sathguru also assessed the business operational efficiency of the enterprise in terms of research strength, seed production and processing efficiency and market reach. A SWOT analysis of the enterprise was carried out to understand technical suitability, growth potential of the enterprise and areas of improvement.

Sathguru carried out financial valuation of the enterprise in terms of lifecycle and growth potential of current products, strength of pipeline and anticipated market returns. Sathguru also developed a growth strategy for the client based on growth potential assessment of existing products, inclusion of additional complementing crops, competitive landscape and changing dynamics of the industry. A detailed business plan was developed for achieving returns as per the proposed growth strategy.

Impact/Result/Client Benefit

Sathguru helped the client understand the dynamics of the Indian seed industry, associated growth drivers and competitive landscape. Sathguru assessment helped the client to understand the growth prospective and limitations of the enterprise aligned with the industry trends for making informed decision making about the industry. A financial valuation helped client on understanding the market value of the enterprise for investment prices. Sathguru helped the client understand the value differentiators in the seed industry and routes for business expansion development with the help of the comprehensive growth strategy and business plan.


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Technical and Commercial Due Diligence, Financial Valuation and Strategic Business Plan of a Seed Company For Potential Investment and Acquisition

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