Peanut Co., a market leader in snacking peanuts, considers acquiring Almond Co. to diversify into the growing snacking almond market. The case explores market sizing, profitability analysis, and strategic considerations. Key elements include:
- US snacking almond market size estimation of $8-10B
- Break-even analysis with a 3-year payback period
- Evaluation of synergies and risks, including cross-selling opportunities and potential cannibalization
- Framework for acquisition decision-making, covering market size, profitability, synergies, competition, and deal price
- Recommendations to the CEO, weighing the benefits of market growth and quick payback against risks of brand dilution and sales cannibalization