Client

Global Food Production Company

Project

Mexico Market Analysis & Growth Strategy – Agribusiness, Retail & Consumer Product Sectors

Executive Summary

The client is a global food production company with a single line of business operating successfully in the Mexican market. With a mandate from management to expand the business aggressively, the client employed Navigate International to conduct a market analysis and recommend a viable M&A strategy that would take the business from $300 million to $1billion in 5 years. 

Business Challenge

In Mexico, there exists very little published information addressing the market segments under review.  Furthermore, the segments under review were highly fragmented, with few key players and limited transparency into the operational capabilities and financial performance of the companies.  Navigate was engaged to research the market segments and key players, to conduct a feasibility study of the client’s growth plan, and to recommend the most viable acquisition strategy that would meet the company’s growth objectives.

How Navigate International Helped

Through an intensive primary and secondary research campaign, Navigate mapped out the market segments offering the greatest opportunity and the best strategic fit with the client’s business.  The research campaign included extensive interviewing WITHIN the client company to consolidate the collective knowledge and contacts of the client team, as well as extensive interviewing of industry experts, trade representatives, and executives from companies throughout the value-chain of the markets under review.  Navigate was able to calculate the Mexican market potential by reconciling over 30 conflicting sources of market statistics.

The analysis included a QUANTITATIVE assessment of the segments and companies under review as well as a QUALITATIVE evaluation of the executives and directors of the proposed acquisition candidates.  Before making any recommendations, Navigate interviewed key executives from the target companies to determine whether a strategic investment would be welcomed and who would be involved in negotiations.  Based on the findings of this study, Navigate developed a Market Analysis Report and Strategic Investment Plan to meet the client’s growth objectives.

Value Delivered

In less than 4 months, Navigate illuminated the market segments under review, identified, qualified and profiled more than 20 acquisition candidates, and developed an M&A strategy that met the client’s growth objectives in Mexico.