Market due diligence | Investment opportunity assessment | M&A landscape and valuation trends

Business need

  • A European private equity firm was conducting preliminary due diligence for a manufacturer of plastic containers and buckets.
  • It sought to understand the global as well as the European plastic packaging market and evaluate investment opportunities, particularly in plastic buckets and industrial-grade rigid plastic packaging segments.

To assess the investment attractiveness of specific segments of the global plastic packaging industry.

The client outlined two key reasons for engaging RocSearch:

  • Our ability to rapidly deploy an experienced and highly pedigreed investment research and advisory team.
  • Our proven track record in conducting market due diligence across sectors and geographies.

Approach and Methodology

  • RocSearch’s strategic research and advisory team prepared a detailed landscape of the plastic packaging industry, analysing the sector value chain and key stakeholders at each stage. We segmented the market by end-use industries and types of plastic such as High Density Poly Ethylene (HDPE) and Low Density Poly Ethylene (LDPE).

We carried out a full impact analysis of the key market trends and examined the environmental and packaging regulations, M&A landscape, and related valuation trends.

M&A Due Diligence
  • We examined the market outlook, assessed the extent of consolidation in the sector, M&A value and volume trends, and median valuation multiples.
  • Further, we mapped out the competitive landscape and profiled major players operating in each segment.

Business Outcomes

  • The study provided a holistic and independent view of the overall plastic packaging market and shared actionable insights on the growth potential of the two key segments of interest for the client.
  • The client was able to align our research output with their own internal due diligence.
  • It was able to complete the entire diligence exercise in less than six weeks and proceeded with the final deal negotiations.

The client was able to complete the entire diligence exercise in less than six weeks and entered final deal negotiations.

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