A Taste for Growth
Satori Capital is a Dallas-based private equity firm founded by entrepreneurs. Their mission is to invest in private companies that are primed for growth.
Satori Capital enlisted Maven to undertake several due diligence projects in the past. This time, the firm had its eye on a flavored syrup and sauces manufacturer. The private equity fund was planning to make a minority investment in the company.
The target’s product is used to flavor hot and cold drinks and is sold both directly to the public via grocery retailers and to foodservice companies. The primary foodservice customers are coffee shops, soda shops, and ice cream parlors. A market leader, the target has a long and well-established history as a respected and preferred brand.
This undertaking was typical of a due diligence project. Our goal was to determine if the flavored syrup manufacturer was positioned for ongoing growth and future opportunities. We analyzed the market size and growth trends. We examined the competitive landscape, the needs of both individual consumers and foodservice customers for the target’s product, and both operational and growth potential.
We found the company had grown significantly during the COVID-19 pandemic. Determining whether that level of growth could be maintained sustainably over the near- and long-term was crucial to Satori’s decision-making.
We evaluated eight distinct macro-consumer trends that would impact the business. All supported ongoing growth. Further, many highlighted the likelihood of future growth opportunities. In addition, we conducted ten one-on-one customer interviews and spoke to 12 separate industry experts. Following our assessment, we believed the target had exceptional value to add.
In light of Maven’s in-depth analysis and evaluation, the team at Satori Capital decided to proceed with the investment. Our creative perspectives and ability to deliver thorough insights and think like owners give our clients the confidence to make moves that propel them in the right direction. Satori Capital’s deal with the target closed in December 2021.