Fajr Capital | M&A due diligence consulting

The problem

The client, a leading investment firm in the Middle East identified an opportunity to acquire a significant minority interest in a manufacturing company with a successful track record of 30 years.

The target company manufactured a variety of products through its owned value chain, with the focus on fluid flow and control equipment such as pumps, engineering components, steel and bronze bars.

The market captured by the target company included major blue-chip clients across multiple sectors but with approximately 45% of their revenue from agribusiness clients. The client needed to understand the market in order to fully evaluate the prospects of the target.

The solution

Farrelly Mitchell carried out a complete commercial due diligence on this potentially major acquisition, leveraging our local supply chain knowledge and understanding of the market — from both a commercial and regulatory perspective.

Among the completed deliverables provided to the client were a complete country and regional agriculture sector assessment. We also provided a commercial assessment of the target’s business divisions, product range & positioning, sales projections, strategy and plans, competitive landscape analysis, market drivers and outlook and assessment of opportunities and threats.

The results

The project was concluded with clear go or no-go recommendations for the transaction to the target and investor with an accompanying red flag report.

The client was empowered to make the decision through being given the most up to date information available on the prospect, giving them a thorough understanding of the external market, and current and future drivers of the target firm.