2022 is already in full swing; nevertheless, we invite you for a brief review.
maconda News February 2022
Despite pandemic-related turbulence in 2021, numerous private equity firms, family offices, and mid-sized family businesses made important investment decisions with maconda’s support (sometimes buying, sometimes selling – and sometimes not). The course was set for future security, and new market potentials were tapped. Thank you to our loyal and often long-standing clients for once again trusting our assessments and our – often very clear and direct – opinion! Thanks also to those clients whom we had the pleasure of assisting for the first time! Differentiated and honest.
Some M&A segments went wild, prices skyrocketed, not only for promising, subscription-based software concepts, for example, but also for some eCommerce companies. Frankly, for some, we just shook our heads at what was (allegedly) paid and, if reliable information is to be believed, what investment hypotheses were sometimes used as a basis and then presumably “confirmed” in due diligences. Corona lockdowns do not last forever, and the long-term high-level impact is debatable. We have been conducting Commercial Due Diligences for 15 years and have seen a lot, especially in retail (which eCommerce mostly is – trading individual products), in the mail-order business (which eCommerce always is, if it concerns tangible products), and in pure-play online business. Even Covid does not suspend economic laws. We shall see…
We have compiled a selection of our activities from the past year for you below. We are not yet permitted to disclose everything by name – some closings will follow in the coming weeks, which we will inform you about in separate newsletters. And we cannot say anything about strategy and especially turn-around projects anyway.
Our success stories can also benefit you in the future – be it for investments, the readjustment of business models, the identification of potentials, a necessary performance improvement, or even a particularly demanding restructuring. Although we must admit that the restructuring business, maconda’s old home, fell significantly short of expectations in 2021 – there was and still is simply hardly anything to restructure.
We wish you an inspiring read – and are always available for any questions.
Your maconda team
Natural cosmetics, active skincare cosmetics, eCommerce
Commercial Due Diligence, performance improvement
Projects in the growing and complex beauty industry have become indispensable at maconda. In 2021, we were once again active multiple times in the fast-paced cosmetics sector. As diverse and colorful as the beauty segments are, so varied were the tasks we successfully mastered for our clients. This includes, shortly before the end of the year, a Commercial Due Diligence for a very strong natural cosmetics brand on Amazon (the closing has not yet been published). As well as a well-known provider of skincare cosmetics, for whom we explored strategic opportunities and developed steps to expand their business. We also once again dealt with contract manufacturers for cosmetics and personal care, including a leading European CDMO service provider for aerosol and liquid products.
Pharmaceutical logistics, outsourcing, pharmaceuticals, narcotics, and OTC products
Commercial Due Diligence
maconda was able to contribute its project experience in the complex world of logistics again in 2021: The family-run Swiss investment boutique Syz Capital, together with Saturnus Capital, acquired a majority stake in SK Pharma, a leading German specialist for contract logistics for the healthcare industry. In our Commercial Due Diligence, we examined SK Pharma’s strategic positioning, the outsourcing behavior of pharmaceutical manufacturers and other providers of healthcare products, and the intricate regulations surrounding the logistics of pharmaceuticals and narcotics. The discretion, which is not surprising for both the pharmaceutical and logistics industries, created a few hurdles. However, maconda consultants, who are extremely experienced particularly in opaque niche markets, were able to overcome these well with their research and analysis methodology refined over many years. This included numerous discussions with various market participants such as drug and regulatory authorities, contract logistics providers, freight forwarders, and logistics experts from the maconda network.
International provider of engineering services
Liquidity management and integrated planning
For a global provider of complex engineering services (design of complex systems, development of components) with several thousand employees operating in multiple countries, we fundamentally optimized liquidity management over several months. After a comprehensive inventory, the previously separate monthly, quarterly, and annual planning – all structured differently, with different planning horizons and intended for different reporting purposes and target groups – were integrated into a unified planning framework and process. In particular, we succeeded, through moderation and implementation, in bringing together the sometimes conflicting interests of the foreign subsidiaries and the German parent company. Over a longer period, experienced maconda consultants then supported the CFO in implementing the planning in Lucanet, a leading software for financial performance management.
Pet food and supplies
Commercial Due Diligence
maconda also contributed its many years of deep experience in several mandates within the rapidly growing pet food industry. For instance, we thoroughly examined the complex business model of an omnichannel provider active in a neighboring country and analyzed the pandemic-related influences on this already very dynamic industry. Additionally, we briefly engaged with a rapidly growing D2C brand for special products for four-legged friends. We further deepened our expertise in this exciting segment by participating in the annual Pet Industry Congress in October, as we are regularly engaged in this industry and naturally want to keep our knowledge up-to-date.
Premium seating furniture, design classics
Commercial Review
More than a piece of furniture – maconda supported Benner Beteiligungsgesellschaft, a Wiesbaden family office with activities in various segments, in acquiring a majority stake in Thonet, the traditional, very well-known manufacturer of premium chairs. To understand the residential and contract business where these design icons are used, maconda closely examined the product portfolio, sales, and customer relationships.
Frozen products, food retail & discount, wholesale, contract catering
Commercial Due Diligence
Cold products – this is also a recurring theme that, so to speak, comes “to our table” from the cold storage. Mostly as frozen foods (FF), but sometimes also in the form of refrigerated medicines (see above). Especially with FF, maconda consultants have been active multiple times in recent years, sometimes related to food retail & discount, sometimes in the form of wholesale, sometimes in manufacturing. In 2021, among other things, we conducted a CDD for a provider of frozen foods in the fragmented out-of-home market and for contract catering, i.e., large kitchens and caterers (“HoReCa”). Furthermore, our expertise was also sought for the due diligence of a leading manufacturer of frozen convenience products, which are sold in retail and food service as branded and private label products.
Create plans, use tools, review plans – structured and realistic
maconda Toolbox
We comprehensively support companies in creating robust business plans, underpinned by sound assumptions and documented in a way that is comprehensible to third parties. Here, we primarily rely on the financial performance management software Lucanet. However, what is often underestimated and, in our experience, often given too little attention by financiers: Can the company’s planning truly withstand validation against the market? maconda examines both – the internal figures and the company’s environment, as well as its strategic positioning.
An industry overview of current or recently completed maconda projects:
Amazon and D2C Brands | eCommerce | Natural and Active Skincare Cosmetics | CMO, CDMO Dietary Supplements | Lubricants | Pharmaceutical Logistics | Heating Technology | Water and Fire Damage Restoration | Building Materials | Engineering Services | Primary Packaging for Consumer Goods | Pet Food and Supplies | Seating Furniture | Coffee and Snacks | Quick Service, Chain Restaurants | Automotive Services | Toys and Model Making | Home & Personal Care | Frozen Foods | Recycling | Private Label and Promotional Business | Many Niches