Offering Memorandum Development
The Client
A Fortune 500 food processor
The Challenge
The many product lines sold by the client included a small volume, niche group of products with growth potential. As volumes were small compared to the client’s mainstream products, management could not dedicate the marketing and development resources necessary to realize the product line’s full potential. For that reason, management had decided to spin out the product line and had engaged an investment banker who distributed an offering memorandum. The response to the offering was unenthusiastic.
The Solution
The client conferred with HighQuest’s affiliate company Soyatech, to understand why the offering generated so little interest. The major question was whether they were they wrong about the growth potential of the product line and should they simply retire the brand rather than try to sell it. Soyatech agreed with management’s previous assessment that the product line had significant growth potential, but pointed out that the growth story had not been persuasively articulated in the offering memorandum. Soyatech undertook the assignment of redrafting the business description section of the memorandum to more fully articulate the brand’s potential value.
The Results
Following distribution of the second version of the offering memorandum, the client’s investment banker fielded a significant number of inquiries from food processors as well as private equity groups.
