Finding strength in partnership
Satori Capital is a private equity firm founded by entrepreneurs based in Dallas, TX with whom Maven Associates has worked in the past. Satori approaches its investments as long-term projects. It is dedicated to partnering and aligning with talented leadership teams with similar values. Based on its previous work, Maven was internally referred to a new deal team within Satori for a due diligence project in the sports nutrition market.
The target of this due diligence project was a contract manufacturer of sports nutrition products. Customers included large retailers and influencers with their own brands. The company is focused on protein-based sports powders and differ significantly from competitors in that it works closely with brands to develop their products. This target is especially skilled at developing flavor profiles, whereas most other contract manufacturers are not as involved in product development.
The project was a typical due diligence project. Maven evaluated market dynamics, the competitive landscape, customer profiles, as well as industry-specific considerations such as regulatory and supply chain. Given the timing, Maven dug deeply into the impact Covid had on the industry. Satori wanted to understand how Covid impacted the market and how the market would change post-Covid.
Maven’s research showed that while Covid had an initial impact on the industry, by summer 2020 it had nearly returned to pre-Covid levels, and by late 2020 it was showing record growth. In addition, the one-on-one customer and expert interviews indicated that the company had tremendous value to add to the industry.
Because of Maven’s thorough work, the Satori team was prepared to proceed with the deal, and the transaction closed shortly after the completion of the due diligence.