Mergers & Aquisitions

Market Due Diligence

Problem

A private investment company is set to acquire a service business. The service business is one of the market leaders in Germany, but the market itself is distorted by political circumstances and other influential factors.

Project Goal

The objective of the project was to conduct a Market Due Diligence, supporting the private investment company in its decision to buy or not to buy the business.

Procedure

Strategic Background Research

• History, Structure, Legal Form
• Organization, Management
• Competency Analysis
• ABC Analysis
• Marketing and Cost Analysis

Goal and Strategy Planning

• Setting Strategic Objectives
• Strategic Planning
• 3-Year Planning
• Country/Regional Planning
• Personnel Planning

Critical Success Factors

• Critical Mass in the Business
• Dependence on Major Customers
• Patents/Titles
• Yield on Revenues, Margins
• Trends
• Barriers to Market Entry
• Customer Relations

Feasibility Study

• Existing Competitive Advantages
• Political Situation
• Customer Demands
• Benchmarking
• Portfolio Analysis
• Competency matrix
• Market Volume, Development & Specifications

Result

The project resulted in a reliable assessment of the business from the market perspective, utilizing a business segment matrix to measure competitive ability, market strength and market potential. A SWOT analysis was also carried out.


Continue to Order Prospect Analysis.

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