Chocolate Cafe Acquisition Due Diligence
Background -The client, a Saudi Arabian holding company, is considering the acquisition of a the Saudi franchise of a Canada based chocolate and dessert cafe.
Brief - A&C associates were contracted to complete a due diligence study in order to aid with the investment decision and determine a price for the acquisition
Work undertaken -The scope of the study included investigation and review of the following areas:
- Franchisor relationship and contracts
- Financial data
- Per store sales analysis
- Operational data
- Store concept/development
- Infrastructure visits
- Competitor analysis
- Marketing
- Store visits
- Supply chain
- HR
Result
- The team was able to submit a comprehensive due diligence summarizing the red flags, amber flags and green flags.
- The report included analysis on the brand growth which led to further scrutinizing showing deceptive sales growth.
- The team was also able to highlight the brand’s potential and provided recommendations that the client could and should focus on in the event that they proceed with the acquisition.
- The report provided by A&C Associates gave the client the bigger picture and they were able to use this in their decision to forego of the acquisition.
