Private Equity

Private Equity

The Food Industry has been a booming area for investment with investments of over $2.5 billion made in food startups over the last two years per CB Insight. The interest from investors is expected to continue, as food offers both relatively consistent consumer demand and the ability to addresses a wide variety of functional and emotional consumer needs.


However, the food industry provides a complex challenge in identifying potential winning investments. From grocery stores to restaurant operators to cafeterias in elementary schools to patient feeding in a hospital, there are millions of opportunities to serve food and a diverse value chain to serve all of these outlets.


Kinetic12 helps investors make a data-driven evaluation of potential food investments using our proprietary methodology and partnership with leading food research company Datassential. We also help investors optimize organizations after the investment has been made leading to higher returns.

SEE CLIENT WORK EXAMPLES

Pre-Investment

Market positioning / competitive landscape assessment

We combine our wealth of food industry knowledge with a proprietary analytic approach to help investors gain a clear picture of the environment in which a potential investment operates. We help you understand the market demographics from consumer behavior to business trends and utilize the Data Essential Firefly Operator Database to assess the current competitive marketplace. The result is up-to-the-minute data and insights that help you know where to play and what to avoid.


Understanding how businesses stack up to industry standards as well as what is considered best in class is critical when it comes to investment decisions. We’ll help you take a look at how the company compares with leading competitors. We’ll also identify key strengths and weaknesses to help you make the best decision on investing as well as have a roadmap for future business improvement. Our goal is to help you know what food companies do well and find opportunities to help them do it even better.

Business strategy evaluation

There’s a big difference between a strategy that only exists for the benefit of potential investors and one that is grounded in fact and can be effectively executed. To make the best judgment for your future investment return, it takes a thorough analysis that will help you know if the strategy is solid and actionable.


Through whitespace analysis we’ll help you pinpoint a plan for organic growth and identify new acquisition targets. We will conduct a thorough analysis of the organizations route to market, product and brand relevancy and positioning, and financial situation with a focus on topline growth and margin leakage.

Management & organization review

With the constant changes in the food industry, organizations must adjust constantly to meet the new challenges and opportunities in the marketplace. We benchmark a company’s capabilities, resources, and structure against what is considered best in class and determine gaps that need to be addressed. Leadership is also critical to deliver the results you want. We assess the capabilities of the current leadership team and can provide recommendations on industry leaders that may be a good fit for the organization.

Financial analysis & forecasting

Kinetic12 understands the importance of financial modeling in assessing the value of a potential acquisition. Kinetic12 has led the development of various financial models including valuation models and “what if” scenario planning models. We can act as a resource to help support the valuation by validating food industry specific assumptions and benchmarking against others in the industry.

Post-Investment

Business strategy design and implementation

Once the investment has been made, the focus shifts to maximizing the return of that investment. Often that necessitates a shift in an organization’s business strategy. Kinetic12 helps organizations not only create a new business strategy but also ensure that it is executed. From implementing a new customer strategy to helping launch a new business platform, Kinetic12 has the experience to ensure success..

Organization design & process improvement

It is critical that investment companies are organized appropriately to deliver optimal results for investors. The right strategy can be quickly derailed if the company does not have the right capabilities, resources, processes and organizational structure. We help companies build the optimal operating model to thrive in the competitive marketplace and over deliver the return on your investment.

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