Commercial & Marketing Due Diligence
Task:
An independent assessment of the investment project
Task:
An independent assessment of the investment project
Client:
Horizon Capital
Region:
Ukraine, CIS, export markets
Market analysis:
- A complex work to research Target's core and potential markets was done, including:
- In respect to domestic and targeted foreign markets of the Target (i.e., Russia, Kazakhstan, Belarus, etc.) were assessed: market size, market growth rate, key players and their market shares, Target’s existing and projected market shares, long-term industry trends per each country of assessment.
- The sustainability of demand for locally produced blood drugs in CIS countries was evaluated specifically.
Operations and competitiveness of the Company:
- A complex work to research Target's core and potential markets was done, including:
- Evaluate Target’s marketing strategy for domestic and targeted foreign markets (i.e., Russia, Kazakhstan, Belarus, etc.), including product mix, pricing policy, logistics and distribution channels, advertising/promotion, etc. Provide recommendations on marketing strategy improvement.
- Analyze the cost and price competitiveness of Target in the current context of import taxes and duties, import/export regulations, and its ability to maintain competitiveness in the future in the case of the abolishment of existing protective import tariffs both in Ukraine and CIS.
- Benchmark and comment on the sustainability of profit margins.
- Assess the main raw material and supply contracts, in particular identifying whether any major contracts are priced at market levels; identify the main raw materials and operating costs of Target, and the main suppliers of these products/services plus any available alternatives
Deliverables:
- An independent assessment of the investment project.
- Revision of the information provided by the Target and the Client.
- In-depth research of the core Target's pharmaceutical market.
- A set of interviews with Target's top management with insights and recommendations.
Key areas covered in the project:
- Assessment of the sustainability of Target’s competitiveness and profitability.
- Research of the sufficiency of domestic and export market demand for new production capacity and for the contemplated increase.
- Study of the market potential for Target’s products in its chosen export sales markets, including CIS, Central Asia, and the European Union.
- Audit of Target's strategy and business plan.