Top Philippine Conglomerate Looks to Procure a Bakery and Restaurant Chain

Background:
One of the top Philippine conglomerates with interests in shopping mall development and management, retail, real estate development, banking, and tourism, was interested in acquiring a leading bakery chain and at the time, the 3rd largest quick-service restaurant in the country. 

Objective:
A&C team was tasked to carry out the due diligence to assist the client in their decision on whether or not to make the acquisition and at what cost to their business.

Work Undertaken:
- Due diligence focusing on the Marketing, Support Services, Logistics and Production

- Confirm financial and operational information provided by the target company (historical, current and projections) and point out discrepancies.

- Identify and evaluate areas/items affecting target company valuation

- Deeper dive into the financial statements of the production plants. 

 -  Technical assessment of the condition of the manufacturing assets in terms of capabilities and potential additional capital infusions

 -  Review of processes and compliance with regulatory requirements in terms of occupational safety, environment, and other government requirements.

- Review the current route to the market and gave suggestions on improvements that could be made.

- Review the sales and diving deeper into the daypart sales to measure the soundness of the declared net income. 
- Identify areas of potential risk/exposure and provide impact assessment

Outcome:
Through reports and discussions, the client was provided with a clear picture of the valuation of the target company. We are happy to report that our client acquired the target company and is successfully trading.