Project Background

In June 2023, Shangpu Consulting was commissioned by a well-known domestic private equity fund to invest in a masterbatch manufacturer. The enterprise is one of the leading color masterbatch manufacturers in China, mainly producing white masterbatch, black masterbatch, color masterbatch and functional masterbatch, which are widely used in plastic products, fiber products, wire and cable, home appliances, auto parts and other fields. The company has a number of advanced production lines and testing equipment, with an annual production capacity of 100000 tons, a high market share, and customers all over the country.

Customer pain points

After examining the basic situation of the enterprise, the entrusting party hopes to know the following information:

The market size, development trend, competitive landscape and profitability of the masterbatch industry;

The core competitiveness, market position, financial situation, operational risks and development potential of the enterprise;

The valuation level and return on investment of the enterprise;

Opportunities and challenges that may face investing in the business.

Research object

为了全面、客观、准确地回答委托方的问题，尚普咨询公司对以下对象进行了调研：

色母粒行业的权威机构、专家和媒体；

The main competitors and upstream and downstream enterprises in the masterbatch industry;

the management, employees and key customers of the business;

Financial statements, contract documents and policy documents of the business.

Project Content

Champ Consulting conducted its research using a variety of methods, including:

Desktop research: collect and analyze the relevant data, reports, articles and other information of the masterbatch industry, and systematically sort out and evaluate the market scale, development trend, competition pattern and profit level of the industry;

On-the-spot investigation: go to the place where the enterprise is located to observe its production equipment, process flow, quality control, etc., and understand its core competitiveness and market position;

Interviews: through telephone interviews or face-to-face interviews, communicate with authorities, experts and media in the masterbatch industry, as well as major competitors and upstream and downstream enterprises in the masterbatch industry, and obtain first-hand information and opinions;

In-depth interviews: through in-depth interviews, in-depth dialogue with the company's management, employees and major customers to discuss its financial situation, operational risks and development potential;

Data analysis: through data analysis software, the collected data is collated, analyzed and modeled, and the valuation level and return on investment of the enterprise are calculated and predicted;

结果呈现：通过PPT、报告、图表等形式，将调研结果和建议呈现给委托方，进行沟通和讨论。

Project Value

The investment due diligence program of Champu Consulting provides the following values to the principal:

Provide clients with comprehensive, objective and accurate market information of the masterbatch industry, help them understand the development status and future trends of the industry, and grasp the opportunities and challenges of the industry;

Provide the entrusting party with in-depth, detailed and professional evaluation of the enterprise, help them understand the core competitiveness, market position, financial situation, business risk and development potential of the enterprise, and judge the investment value and risk of the enterprise;

Provide the entrusting party with a reasonable, scientific and reliable valuation level and return on investment of the enterprise, and help it to formulate appropriate investment strategies and plans to achieve investment objectives and returns;

It provides professional, neutral and powerful consulting support to the entrusting party to help it communicate and negotiate effectively with the enterprise and promote the smooth progress of investment transactions.