Deal Origination and Commercial Due Diligence on Deltamune

After supporting Phatisa on previous transactions, Step Advisory identified a potential strategic acquisition within its network and formally introduced Phatisa and Deltamune. Step Advisory then assisted Phatisa by executing a detailed Commercial Due Diligence on the production animal health industry to inform its investment decision regarding Deltamune.

To adequately assess the growth prospects associated with the target company, Deltamune, Phatisa required an independent and detailed analysis of the production animal health industry and the commercial elements of Deltamune’s business. This analysis helped Phatisa better understand certain risks and opportunities inherent to the industry and the business of Deltamune.



4 weeks


Animal Health

Step Advisory has supported Phatisa on several transactions in the past and was keenly aware of Phatisa’s strategic focus areas for future acquisitions. After identifying a need for strategic partners in Deltamune, Step Advisory made a formal introduction to Phatisa. Based on Phatisa’s value-add proposition and their overall focus as an investor, Step believed they would provide a strong strategic fit with Deltamune’s business and its growth ambitions.

As the transaction progressed, Step Advisory executed a detailed Commercial Due Diligence on the production animal health industry. This included sizing the local and specific African markets and identifying key trends that either promote or constrain growth, evaluating competitors and understanding competitive dynamics in the industry, analysing the role of key players across the value chain and highlighting key areas of reliance for Deltamune.

Step Advisory also performed a detailed commercial analysis of Deltamune, which evaluated key business model elements against competitors and analysed the strength, profitability and sustainability of supplier and customer relationships. The analysis also interrogated the commercial drivers for key growth opportunities against trends and dynamics inherent in the production animal health market and the business’s historical performance. It highlighted the sustainability of the existing business and management’s growth ambitions.

The outcome of the Commercial Due Diligence was a detailed report that highlighted the key commercial risks and opportunities for inclusion in Phatisa’s investment committee report. This report aided in a successful transaction being concluded and closed out in December 2021.

We have enjoyed our longstanding relationship with Step Advisory – we trust and rely on the quality of their work in combining market data with the much needed commercial insights to assist our investment decision making processes. ”

Rinolan Moodley, Partner