Mergers & Aquisitions

Challenges for the industry

Private equity investment companies look for investment opportunities with businesses of the most diverse industries and sizes. Businesses, in pursuing growth objectives, look for opportunities to acquire other businesses. While trying to refocus on core competencies, many companies try to unload peripheral (non-core) business operations. A number of family-run enterprises are in need of successors. So business owners turn to private investment companies, which will either purchase the business and install new management, or resell it on behalf of the owner.

Solutions through Consulting Services

Intensive scrutiny from the market perspective is often lacking in the appraisal of businesses being considered for purchase. The analysis generally focuses on past financial figures, not the potential of the market. In the course of a due diligence analysis (evaluation of a business to be acquired), the focus is generally on finance and accounting data. Legal issues are also thoroughly investigated. There are two weaknesses evident in this procedure:

• This information chronicles the present and the past, but does not look into the future,
• It inadequately reflects the market and the competitive situation.

Market Due Diligence is a tool we have developed to perform structured surveys and systematic analysis of market information and information on the competitive situation of the company in question. Market data is collected from the customers', suppliers' and competitors' points of view. In addition to collecting secondary information (from databanks, industry journals, market research studies etc.), primary research is generally conducted using telephone and face-to-face interviews. Depending on the situation, various tools are implemented in the Market Due Diligence process:

Competitive advantage matrix, order prospect analysis, brand value appraisal, customer structure analysis, marketing audit, ABC analysis.

Project examples

Continue to Market Due Diligence. Continue to Brand Value Analysis. Continue to Order Prospect Analysis.

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