Consumer goods

A multinational client operating in the consumer goods sector had an operational requirement to sell one of its businesses which represented about 7% of its global operations.

The client approached us for assistance in selling one of its businesses,  which would ultimately result in reshaping and sharpening its portfolio for long-term growth.

Identifying realistic revenue forecast scenarios which could move revenue to +2% growth with better advertising, new product development (NPD) and geographic expansion.

Carve out planning and execution was pivotal to delivering optimal value as it was a very complex carve out; with operations and functions being shared with the portfolio business.

Identified value creation opportunities (for each scenario above) in cost saving and tax planning. There were over €200m in cost reduction opportunities, considering the tax angle to increase the cash return on capital invested and c.20% EBITDA margin on spreads to increase efficiency on raw materials.

We identified more than €200m EBITDA improvement, which indicates that the carve out approach and execution was vital to realising maximum value for the client. Ultimately, our team created a €2bn increase in value on the €6.8bn sale of the portfolio business.

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