The client
The client for this project was a West African private equity firm headquartered in Lagos, Nigeria, with a mandate to invest in and support small and medium-sized enterprises in high-growth sectors. The client had established itself as a credible institutional investor in the sub-Saharan African market. They focussed on businesses with strong fundamentals and clear pathways to scale. Their portfolio spanned Ghana and Nigeria.
The client had identified a potential investment in a partially integrated poultry business located in South-Eastern Nigeria. The target company comprised of a feed mill, a layer farm with a capacity of 262,000 birds, a broiler production operation which housed 90,000 birds, and a rearing facility with a capacity of 85,000 birds. The business employed 125 staff and was in the process of commissioning an automated broiler meat processing plant, a new feed mill, and an automated egg grading machine.
Background
Nigeria’s poultry sector is one of the largest and most dynamic segments of the country’s agricultural economy. Demand for poultry products, particularly eggs and broiler meat, continues to grow. This is driven by population growth, urbanisation, and rising protein consumption among middle-income households. However, the sector remains highly fragmented, with the majority of most production concentrated among smallholder and semi-commercial operators. Integrated farms with the scale, technological competence, and management sophistication to develop into market leaders are comparatively rare, particularly in the South-Eastern part of the country/region. However, for such farms, opportunities exist to capture a disproportionate share of the market.
The problem
Before committing capital, the client needed an independent, expert-led poultry feasibility study to assess the target company’s technical and operational fitness. While the business presented attractive headline metrics; (high production capacity, diversified revenue streams, and ongoing capital investment), the client could not make an informed investment decision without a thorough evaluation of the underlying operational performance, facility condition, and management capability.
Specifically, the client needed to clarify whether the target’s production facilities and technology met or exceeded Nigerian industry standards, whether biosecurity and food safety protocols were robust enough to meet regulatory standards and prevent the spread of diseases, how the operation’s productivity metrics compared with regional benchmarks, and whether the management team had the depth and structure to support the planned expansion. The client also needed an assessment of the target’s key supply chain relationships, particularly the reliability and quality of its day-old chick supplier, which directly influenced flock health and production economics.
The solution
Farrelly Mitchell was engaged to conduct a comprehensive poultry feasibility study and operational due diligence on the target company. The engagement was structured around three core components: an operational review and facility assessment, a detailed benchmarking exercise, and a set of actionable recommendations to inform the client’s investment thesis and post-acquisition value creation plan.
The Farrelly Mitchell team, led by our Regional Director for Sub-Saharan Africa and supported by our technical consultants and specialist poultry experts, conducted on-site audits over two days. The assessment covered all production areas of the ~5,000 square-metre facility, including the broiler pens, layer houses, rearing houses, feed mill, egg storage and sales rooms, as well as the slaughterhouse, which was still under construction. The team evaluated infrastructure quality, equipment condition, environmental controls, biosecurity protocols, sanitation practices, feed formulation, feed sourcing, health and safety compliance, and the degree of automation, as well as the management and staff structure.
A parallel benchmarking exercise compared the target’s key performance indicators against both Nigerian industry standards and recognised best practices. Metrics assessed included average mortality rates during rearing, duration of production cycles, feed conversion ratios, broiler performance efficiency factors, egg output per bird, and the level of automation across each production area. The team also conducted a virtual review of the target’s primary day-old chick supplier, a local hatchery operation with an annual capacity of up to 1.2 million chicks, evaluating its biosecurity measures, breeding practices, and transportation protocols.
In addition to the technical assessment, our poultry experts analysed the broader Nigerian poultry market, detailing market size, growth projections, competitive dynamics in the South-Eastern region Nigeria, key product categories and distribution channels. We also provided a detailed breakdown of the target business’ market positioning.
The impact
Our poultry feasibility study and operational due diligence analysis provided the client with a clear-eyed assessment of both the strengths and material risks associated with the target business, enabling a well-informed investment decision.
The assessment confirmed that the target company operated above Nigerian industry averages across several key production metrics, validating the business’s commercial potential. At the same time, the review also identified specific operational gaps in biosecurity enforcement, environmental controls, and management structure that, if left unaddressed, would constrain the business’ ability to scale efficiently and sustain performance post-acquisition.
The benchmarking exercise and supplier review gave the client a quantified basis for evaluating the target’s productivity relative to both local competitors and international best practice, while highlighting areas where supply chain risk could be mitigated through diversification or contractual safeguards.
The recommendations delivered as part of the engagement gave the client a structured post-acquisition roadmap. It identified priority capital expenditure items and the operational improvements required to unlock the business’ full growth potential. Ultimately, this enabled the client to enter negotiations with a realistic view of both the opportunity and the investment required to realise it, and to structure deal terms that reflected the true condition of the target business.
Forge ahead with Farrelly Mitchell
This engagement illustrates Farrelly Mitchell’s capacity to deliver rigorous, investor-grade due diligence that equips acquirers and institutional investors with the operational insights they need to make confident decisions in complex agribusiness markets. Our team’s ability to combine deep local knowledge with an awareness of international best practices, ensures that our assessments are contextually grounded and…
In addition to poultry feasibility studies, Farrelly Mitchell provides operational due diligence, commercial due diligence, market intelligence, investment advisory, and post-acquisition operational improvement planning, as well as sector benchmarking and advisory to agribusiness investors and operators. Whether you are evaluating an acquisition target, assessing a portfolio company’s operational performance, or developing a value creation strategy for an existing agribusiness, our team delivers independent, evidence-based analysis tailored to your needs. To discuss how we can support your next investment, contact our team today.
