Technical and Commercial Due Diligence of the Target Seed Company for Strategic Investment

March 15, 20220
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Sathguru helped a globally renowned multilateral trust fund evaluate the target company’s current product portfolio and competitive benchmarking, analyzed the R&D capabilities and product pipeline strength, and assessed business process efficiency. Sathguru further assisted in mapping the target company’s financial and market growth projections and delivered a comprehensive report for the Client to undertake strategic investment decisions.

Situation Analysis:

Our Client, a pioneer in global sustainability and environmental investing entity, expressed their interest in exploring investment opportunities in a pre-identified India-based seed company. Sathguru helped the Client is undertaking a strategic investment decision by conducting in-depth technical and commercial due diligence of the target company.

Scope:

The scope of Sathguru’s engagement included:

  • Assessing current product portfolio, market performance, and business operational strength.
  • Evaluating the R&D pipeline, infrastructure, and trial management system
  • Analyzing market dynamics, identifying growth prospects, and competitive benchmarking of product performance in the market.
  • Scrutinizing product-specific financial performance and mapping the company’s growth projections.

 Approach:

Sathguru’s approach was to conduct the target company’s technical and commercial due diligence in terms of the current business portfolio, R&D strength, and business process efficiency. Product-wise market performance and competitive benchmarking. Sathguru further assisted in mapping the company’s growth potential by scrutinizing the financial and market growth of the company in the market.

To achieve this, Sathguru:

  • Conducted industry landscaping to understand potential business models and the competitive strength of top players.
  • Performed assessment of the company to understand their current product portfolio and market performance, business process system for the existing products.
  • Evaluated R&D capabilities, trial management systems, research programs, and mapping the market potential of pipeline products.
  • Assessed supply chain dynamics, operational infrastructure, digital tools, and product distribution management system.
  • Developed growth projections based on fundamental financial assessment and performed competitive benchmarking based on financial parameters.
  • Analyzed the company’s regulatory compliance alignment and delivered a comprehensive analysis on the potential impact of COVID-19 on the business.

Recommendations:

Sathguru made recommendations to the Client based on the technical and commercial due diligence of the target seed company:

  • Sathguru recommended that the target be a good investment fit based on an in-depth analysis of the target from a techno-commercial perspective, highlighting a strategically balanced market and financial performance position. Sathguru also suggested strategies to expand market share with existing products and further improve the R&D pipeline to enhance competence.
  • Sathguru mapped the potential impact of COVID-19 on the target company’s business and further suggested growth and profitability strategies, identified specific improvement levers that could be integrated into the existing business system to ensure stability and market performance.

Impact/Result/Client Benefit

Sathguru helped the Client make an informed investment decision with a comprehensive techno-commercial understanding of the target company’s potential and recommended scope of research and investment realignment in the existing business system to foresee the expected growth.

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Technical and Commercial Due Diligence of the Target Seed Company for Strategic Investment

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