CASE STUDY OF GRANT THORTON

We look at the colas acquisition..It has financial records which shows the company is on
a positive growth. Over the years, the company keeps on growing since the year 2014 to
year 2016. The sales increased from 44,032 Euros in 2014 to 53,548 Euros and in 2016
it was 62,289euros and the figures are in thosands . This directly translated to the
realization of increasing profits.
The company deals in the selling of variety of alcoholic drinks. This drinks are wines,
beers and Spakling . The company has great financial records which are easy to retrieve
and compare and make informed decisions on running the company. This has made them
have, profitable and gai the success, the company with this profits levels, can increase
the scope of the business by accquision of by another business. Colas goes through
financial and legal due diligence for it to have a proper acquisition. Interviews to the
industry’s workers and with customers and evaluating of the management and having
face to face interviews is a good way of accessing the acquisition strategy.
Gross margin is the net sales minus the cost of goods sold. When you reduce the costs
incurred in the production of goods and the services offered. the sales realized is
available financial position the business is in
The findings made from the Colas acquisition is that the company made strides in
increasing the number of customers. Customers D,E,F,I.I and M came on bond and
helped realize the profits and broader running of the business which brought about
growth. This was a key driver in realizing more sales and great margin. The only

3

CASE STUDY OF GRANT THORTON
customer lost over the years, was customer c because of delivery problems.The delivery
problems have to be addressed so as to bring more customers on board.
After making sales and reducing the cost brought about by out sourcing, and the cost of
the good s available for sale. The company realized gross profit that keeps growing over
the years. With reduced cost incurred by the company would mean the burden would not
be passed to the customer, this would mean an increase in the number of customers.When
Colas lowered the price of wine in the year 2016, there was increase in the volume of
wines sold.This effect was brought about by an estimated margin gain of 300k Euros.
The company realized that there was icrease in the consumption of the wine than any
other commodity and so the sale of wine had to be given priority. An increase in the
volume sale of wine should be done while on the othe hand redusing the quantity of beer
which is the less moving good, this was done in the year 2016. At the end of year
2016,quantity of wine sold was so high that the company had a gross margin of 92% of
the overall margin. This means that there should be more great emphasis on the sale of
wines because it is a very fast moving good than others. The ssparkling commodity
should be popularized so as to fairly compete with the supermakets that sell them and
bring about competition..Redused costs should be enhanced so as to compete favourably
with other entities.The company should look for reliable sources who distribute quality
beers, this is to enhance consumption of beer goes up. With the growing nature of the
business, acquisition with the Bouygues Telecom in the year 2014 is good for its growth
and more investment ought to be done.