Project Bolt | Due diligence in West Africa

The problem

We conducted an technical and commercial due diligence for our Client, a West African private equity investor with a mandate to support SMEs to become leaders in high-growth sectors. They were considering the acquisition of an integrated poultry business in Nigeria (Target).

The Client needed full visibility of Target’s technical and operational capacity, application of technology, biosecurity status and recommendations, as well as the risks and opportunities for the investment. The Client also required a study on the commercial poultry market drivers in Nigeria.

The solution

Farrelly Mitchell were engaged by the Client to conduct investment due diligence including technical and operational due diligence (TODD) on Target’s facilities, as well as commercial due diligence (CDD) on the Target.

Our team of experts carried out a full on-site assessment of facility design, biosecurity standards and an operational review. It was important that this assessment was conducted on the farm as it allowed our consultants to see and assess first-hand the standards in real-time.

We also interviewed several staff members at different levels, from management to farm operators, to assess the skills capacity in the business. Our review identified some operational gaps and our team provided hands-on appropriate mitigation strategies for enhanced operational efficiency.

In our commercial study, we conducted a market landscape overview, a market attractiveness assessment and an overview of the competitive landscape in the region.

The results

Farrelly Mitchell provided the Client with tailored and targeted red flag investment due diligence reports including TODD and CDD reports. These reports allowed the Client to make informed decisions on where to focus investment and capacity-building activities and importantly final negotiations with the seller. Workshops were held to facilitate Client feedback and incorporate this into final due diligence reports.