Natureview Farm Case – Executive Summary
Natureview Farm Case – Executive Summary
Objectives
1. Grow Natureview’s revenue to $20M by calendar year end 2001. 2. Position Natureview for acquisition and / or find a new investor.
Our Solution
With opportunities such as the one presented in the Natureview Farm case, executives and corporate leaders have a tendency to focus exclusively on the stated revenue objective. We believe that doing so is short sighted and will not best position Natureview for acquisition or additional equity investment, either via a private equity sponsor or via a business to business transaction. There are several options being considered by Natureview, however; taken independently, these options will either not meet the revenue objective or will have an adverse impact on margin. The erosion of margin should be a significant factor considered when looking at Natureview from a holistic point of view.
It is our position that in addition to the revenue focus, it is incumbent upon executives and corporate leaders to position Natureview for future growth and to improve margin while achieving the stated revenue objective. Further, the existing executives and corporate leadership need to create their own value proposition and distinctive value in order to both move the acquisition multiplier up the scale and to protect their positions post-transaction. Each of these objectives is accomplished with our solution.
Our recommended solution is to implement Option 3, introducing two SKUs of a children’s multi-pack into the existing natural foods channel. Concurrently, we recommend a phased implementation of Option 1, which is to expand six SKUs of the 8-oz product line into one or two selected supermarket channel regions. Our recommended phased implementation will begin with the northeast region in Q3 of 2000 and will be followed by the west region in Q4 of 2000.
Although there are several benefits or predictive factors of success, the key elements of the
Objectives
1. Grow Natureview’s revenue to $20M by calendar year end 2001. 2. Position Natureview for acquisition and / or find a new investor.
Our Solution
With opportunities such as the one presented in the Natureview Farm case, executives and corporate leaders have a tendency to focus exclusively on the stated revenue objective. We believe that doing so is short sighted and will not best position Natureview for acquisition or additional equity investment, either via a private equity sponsor or via a business to business transaction. There are several options being considered by Natureview, however; taken independently, these options will either not meet the revenue objective or will have an adverse impact on margin. The erosion of margin should be a significant factor considered when looking at Natureview from a holistic point of view.
It is our position that in addition to the revenue focus, it is incumbent upon executives and corporate leaders to position Natureview for future growth and to improve margin while achieving the stated revenue objective. Further, the existing executives and corporate leadership need to create their own value proposition and distinctive value in order to both move the acquisition multiplier up the scale and to protect their positions post-transaction. Each of these objectives is accomplished with our solution.
Our recommended solution is to implement Option 3, introducing two SKUs of a children’s multi-pack into the existing natural foods channel. Concurrently, we recommend a phased implementation of Option 1, which is to expand six SKUs of the 8-oz product line into one or two selected supermarket channel regions. Our recommended phased implementation will begin with the northeast region in Q3 of 2000 and will be followed by the west region in Q4 of 2000.
Although there are several benefits or predictive factors of success, the key elements of the