Strategic M&A + PE Investment
Evaluating acquisition of a digitally-native competitor brand to boost US market share.
Developed growth strategy to achieve $1B+ revenue target
AD completed target acquisition and strategic growth investment
The team evaluated the target brand’s technology, warehouse and delivery infrastructure to determine valuation based on a 5-year strategic growth plan and advised on both M&A and strategic investment.
Ahold Delhaize, is a Dutch multinational company. Its business model includes supermarkets, convenience stores, hypermarkets, online grocery, online non-food, drugstores, and liquor stores. With 21 local brands, it employs 375,000 people at 6,500 stores in 11 countries - mainly the Netherlands and Belgium. The company has been able to grow due to its operational expertise and was seeking to enhance its market share in US regions.
FreshDirect is a leader in the US online grocery sector, with more than 20 years of local market and customer experience. The primary focus is on fresh food and differentiates based on direct relationships with local farmers. The company’s efficient supply chain enables faster and more direct delivery of fresh food than most conventional grocery services. Its ecommerce platform enables customer ordering, from picking through packing, to last mile delivery, including the ability to provide same day and rush delivery.
- Ahold Delhaize was seeking revenue expansion through the acquisition of a US-based e-commerce grocery brand with existing operations.
- FreshDirect had established a stronghold in the New York tri-state through an innovative e-commerce, direct-to-consumer solution.
- The goal was to determine whether combining Ahold Delhaize’s supply chain excellence with FreshDirect’s ecommerce solution could achieve greater market share.
Because Ahold Delhaize was seeking greater revenue and adoption rates through digital channels, the team at BoCG conducted a holistic evaluation of the target company’s intrinsic and growth value. We set-up teams of experts to methodically evaluate the operational and technical infrastructure behind the asset - support the acquisition options with quantitative and qualitative metrics and modeling.
In analyzing the product-engineering capabilities, methodologies and techniques included engineering evaluations across Systems Review, Technical Debt Analysis, as well as Infrastructure and Architecture Analysis. In evaluating the design and product capabilities, expert techniques included Product Design and User Experience Evaluation, Quantitative and Qualitative Consumer Sentiment Report Analysis, as well as Server, Web, and Mobile Usability Testing. The operational forensics included full Human Resources Performance Evaluation, Core Competences and Capabilities Performance Review. Lastly, in order to convey capacity building for an informed acquisition, the team conducted key analysis on Inventory and Product Selection, Warehouse Productivity, Fleet and Delivery Effectiveness Review, as well the asset’s Geographies Served / Penetration Performance. The team’s executive and detailed roadmap conclusions were presented to Ahold Delhaize’s Board and Executive Committees to complete the transaction with partnering financial teams amongst Bank of America, Bain & Company, and Goldman Sachs.
- Developed technical roadmap for modernized technology stack
- Developed holistic hub-spoke model strategy to expand warehouse’s geographical reach
- Developed financial model for robotics-facilitated fulfillment centers investment
- Modeled cost-savings for efficient last-mile delivery optimization
- Developed roadmap estimated to generate 1.6x revenue growth
- Acquisition completed with strategic investment capital across modeled growth and post-M&A development
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