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Hard Go/No go M&A Acquisition

To Port or not to Port

#Consumer Goods #Consumer #Beverages
ProHub Comment

This case requires candidates to build a comprehensive acquisition analysis combining financial modeling (revenue and cost forecasting), market analysis, and operational optimization. The case tests both quantitative precision and strategic thinking, with the key insight being the ability to identify and monetize operational efficiencies through vertical integration of brandy production.

Estimated Time 15 minutes
Difficulty Hard
Source Duke
50 / 100
Our client, Beertastic Ventures, is a global beverage manufacturer, specializing in producing beer and cider. They’ve been approached with an opportunity to purchase Portalicious Enterprises, a port manufacturer based in Porto, Portugal. Port is a sweet, fortified wine, made from 2/3 wine and 1/3 brandy. To be considered a true port, the grapes must come from the Douro Valley (a UNESCO World Heritage Site), a region not far from Porto, Portugal, where the wine must be made. Beertastic operates manufacturing facilities in Asia, the US, Europe, and Australia. Portalicious has manufacturing facilities in Porto and vineyards in the Douro Valley. Our client needs your help to figure out whether it should acquire Portalicious.

Clarifying Information

  1. Beertastic’s financial objective is to at least breakeven by the end of year 2.
  2. Beertastic Ventures is a medium-sized player in the global beer market.