UniCredit

Case

07
2022

1
Relevant M&A issues and valuation environment

Interesting M&A issues would be :

• Consumer Goods & FMGG : current EV/EBITDA is 18.35 as of 2022 for household products (Source : Statista)

2
M a r ke t v i e w a n d p o t e n t i e l s t r a t e g i e s

Constant market growth…. …driven by customers’ needs …requiring new strategies

Hygienic living and housekeeping have • New business line/acquisition

CAGR : +5,1%
increased following the numerous focused on environmental-
waves of Covid-19 cases friendly products :
Market value in billion

45,17 46,9 • Recycled material,

41,94 43,54
37,85 40,11 Regulatory authorities have less plastic waste
U.S. dollars

Household 31,99 34,58

31,45 implemented tight regulations • 0% petrochemicals
products
regarding cleaning on the workplace /microplastic
• Natural products
Many customers gravitate towards
green and natural products, both • Industrial-grade cleaning
XX environmental and skin-friendly products company acquisition
2018 2019 2020 2021 2022 2023 2024 2025
(14%) 2026

More customers add personal care • New business line/acquisition

CAGR : +3,7% products to their routine focused on natural and
environmental-friendly
482,9 products :
Market value in billion

445,81 463,74
407,25 428,11 Customers are favoring natural and • Recycled material,
360,01 364,83 352,96 372,26
U.S. dollars

Beauty & green products both environmental less plastic waste

Personal care and skin friendly • Natural products

Increased demand for regenerating and • Creating new segments

anti-aging products as global covering general skin care
XX population is gradually becoming older (face and body)
2018 2019 2020 2021 2022 2023 2024 2025
(14%) 2026

3
M a r ke t o v e r v i e w ( 1 / 2 )

In-depth overview of relevant companies Comments

• Interesting companies had :

• Competitive prices (Marcel’s Green Soap, AlmaWin, Letzwash)
• Well established notoriety and customer base (Sodasan, Sonett)
High

• Less interesting companies had :

• Unique business model questioning profitability (Imnuu)
• B2B model which did not integrate well in the company’s envisioned
strategies (Davimed)
• Customer base largely made up of large-corporate clients (Remsgold)
Price

Medium
Low

Low Medium High

4
Quality
M a r ke t o v e r v i e w ( 2 / 2 )

In-depth overview of relevant companies Comments

• Interesting companies had :

• Competitive prices (Weleda, Apeiron)
• Well established notoriety and customer base (i+m)
High

• Business lines deemed interesting for the client (haefele.fashion)

• Less interesting companies had :

• Pricing and client base deemed less aligned with market’s current
dynamics (Dr. Barbara Sturm, Royal Fern)
• Market positioning too different : raw materials (Satin Naturel), skin
care (Dr. Hauschka, Jasha, Augustinus Bader)
Price

Medium

• Instead of an acquisition, the company could buy :

• Equity in a joint venture
• Acquisition of a non-controlling stake in a company
•
Low

Supplier agreement contract from the company

Low Medium High

5
Quality
Company profiling

Company Founded Shareholders Headquarters Geographic presence EV/ LTM EBITDA Strategy Business Structure

• One of the earliest manufacturers of

• Business is evenly split between household/laundry
ecological laundry detergents and cleaning
1977 Private Deggenhausen World - cleaning products, personal care and special cases
agents. Direct competitors on all business
products
lines

• Manufacturer of ecological and

• Business is evenly between household/laundry
environmentally friendly general cleaning
1982 Private Uplengen World - cleaning with less empathis on detergents and more
products. Direct competitors on all business
on disinfection/room scents
lines

• Vegan and organic personal care products • Business is split between Body Care/Hair
1978 Private Berlin Europe -
manufacturing Care/Accessories

• Organic products based on Ayurveda • Business is split between Oral Care/Facial Care/Hair
1999 Private Wallenhorst Europe -
medicine and philosophy Care and Nutritional supplements

6
Va l u a t i o n a n a l y s i s

As for valuation analysis I would use :

• Comparable companies analysis with selected peers
• Precedent Transactions
• Discounted Cash Flow analysis
• SOTP (Sum Of The Part)

In order to build a peer group I would apply several criteras :

• Same industry
• Similar metrics (revenue, number of employees)
• Geographical proximity (due to fiscal reasons)
• Similar cost-structure and profitability
• Recent transactions (1-2 years)
Metrics for multiple process
• EV/EBITDA (because this metric is the closest to operational
performance and profitability, also close to cash flows)
• P/E