Commercial Due Diligence for Investec

Step assisted the investment team of one South Africa’s leading banks with a Commercial Due Diligence focused on the local Food and Beverages industry.

In order to make an informed investment decision, with a clear understanding of the market and potential value to be realised, Investec Private Capital, on behalf of one of their key clients, required assistance with conducting a detailed Commercial Due Diligence of a specific element within the local Food and Beverages industry.



Due Diligence


4 weeks


Food & Beverages

Step worked closely with the deal team to understand the investment thesis and key value drivers for the transaction. A Commercial Due Diligence was then executed by the Step team in conjunction with experienced subject matter experts.

As part of the due diligence process, Step conducted a detailed review of the market including sizing the relevant areas in which the target operated, as well as identifying current and future trends which would promote growth in the business. Step also provided a detailed analysis of the competitive environment by understanding the key players within the value chain and the target’s relative positioning (strengths and weaknesses) in relation to its competitors.

Apart from the market review, Step executed a detailed business review which unpacked and analysed the progression of all key value drivers in the business, the performance of the business at a product and customer level, security of key input supply as well as the forecasted growth of the business in relation to market trends and the competitive landscape.

The report by the Step team detailed the key commercial risks and opportunities relevant to the target, showing the potential hurdles which may hinder the value derived from the transaction as well as the areas where further value creation may be possible. This provided the deal team with independent and objective strategic insights, backed by rigorous data and market analysis, to inform the investment decision and their value creation planning.

Step assisted us in the commercial analysis of our acquisition by doing a deep dive into the subject matter in a complicated and diverse industry crystallizing this into growth opportunities and risks in a clear, and concise manner highlighting key areas of focus for our deal team.
I was particularly impressed by the ownership taken by Byron in ensuring he is immersed in the detail of the subject matter as often other advisory firms will leave this to the junior members of the team. Byron and his team ensured there was regular feedback and updates, clear and detailed communication and a full debrief which ensured good value for money. I think this distinguishes Step and sets them apart in a very competitive market environment.”

Bradley Beck, Investec Private Capital