Case study topic:

A US snack foods company specializing in snacking peanuts, Peanut Co., is planning to acquire another company specializing in snacking almonds, Almond Co. Peanut Co. is currently the market leader in snacking peanuts, but the overall segment is growing slowly compared to the market and they want to diversify. They have hired you to provide a recommendation to the CEO of the Peanut Co.

Case study questions:

Market sizing:

How large is the market for snacking almonds?

How much is this industry expected to grow? Is it trending up, down, or stagnant?

Profitability:

How profitable will this product be (e.g., pricing, costs)?

Is snacking almonds a more premium market then snacking peanuts, in terms of price?

Synergies / dis-synergies:

Can we leverage Peanut Co.'s existing capabilities (distribution, marketing, sales)? Will entering cannibalize existing sales?

Is the overlap between almond and peanut customers high?

Competition:

Is Almond Co. the preferred brand in the market? Who are the current competitors?

What are the barriers to entry?

How large is the threat of new entrants?

Deal price:

What is the deal price and how will we finance the deal?

Deliverable:

final recommendation to the CEO of the Peanut Co.