In practically every product category there is some overcapacity in the private label industry. In the last few years this has led to a surge in mergers and takeovers. Consolidation of the private label industry has created large professional players who, often on a pan-European scale, work side by side with retailers. IPLC has been involved in numerous projects in which assistance was provided in market analysis or commercial due diligence.
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Market analysis
The private label market is far less transparent than that of brands. In a merger or takeover it is therefore relevant to collect as much information as possible in the preliminary phase. In various projects the database of IPLC has proved to be a valuable source of information. The handover of both qualitative and quantitative market information but also a competition analysis form part of the possibilities.
Commercial due diligence
Because manufacturers in the private label industry generally work with annual supply contracts, it is of major importance in case of a merger or takeover to have good insight into the quality and sustainability of the manufacturer’s turnover. IPLC can make an important contribution to the analysis of this. On the one hand by examining contracts, customers files and other relevant documentation. On the other hand by means of interviews with management and if desired with the buyers in retail. Valuable material is thus obtained to assess the ultimate value and transaction price of a company.