Case Study

Prompt and relevant insights for consultants and advisors

  • Private Equity
  • Consumer
  • Europe

Nestle is the world’s largest health and nutrition company, boasting over 2,000 brands across six business units. The Skin Health division had been suffering from increased competition and underperformance. Beginning in July 2018, the company was facing calls for restructuring from activist investors. Two months later, Nestle announced plans to sell or spin off its skin health business.

In a high-stakes, competitive bid environment, we need speed and relevance when conducting due diligence. With Third Bridge, the two are not mutually exclusive, and it's why we trust them to get us the insights and access we need for our PE clients.

Partner, Leading Private Equity Consulting Firm

Research Insight

Third Bridge moved quickly to map the nuances of the situation, looking at key factors including capital allocation, pipeline and portfolio strength versus key competitors and value creation opportunities for potential acquirers. The research team began recruiting bespoke specialists, including former Nestle executives and competitors, who could address these issues for private equity and consulting clients. Third Bridge Forum arranged multiple interviews which served to extract critical insights on the existing business unit, including an understanding of the realistic timelines for successfully separating the unit from Nestle taking into consideration reliance on Nestle’s sales and marketing infrastructure. Interviews with Third Bridge specialists helped our clients generate SWOT analyses for the OTC brands, understand market size and growth rate by geography as well as the competitive landscape, distributor relationships and private label prognoses, among other areas. Third Bridge Connections arranged 120 consultations with:

  • Former Nestle commercial and operational experts who could discuss the full portfolio of consumer, aesthetic and prescription solutions
  • Opinion leaders who could discuss skincare and dermatology regulations
  • Competitors

Outcome

Third Bridge worked at scale and with pace in a competitive bid situation to provide numerous firms, including the eventual acquirer, critical insights in a timely fashion. The deep, informed research to provide the specific and relevant content and specialists, provided clarity and conviction to a high-stakes, ~$10 billion transaction.