Target Due Diligence | Investment Opportunity Assessment | Valuation Support

Business need

  • A European private equity (PE) firm was considering the acquisition of a telecom company and wanted to gather intelligence on its operations, evolution, strategy and growth prospects.
  • It also wanted to get a fair assessment of the target company’s strengths, weaknesses, challenges and future valuation before making an investment decision.

To gather intelligence on the potential target’s operations, strategy and valuation and explore synergies for acquisition.

The client outlined three key reasons for selecting RocSearch:

  • Our proven investment research and advisory capabilities.
  • Our wide exposure to the European telecom markets.
  • Our expertise in strategic pre-bid diligence on target sectors and companies.

Approach and Methodology

  • Our investment strategic advisory team initiated the analysis of the target company by examining its growth, evolution and customer base. We mapped out the expansion of the company’s customer base on a timeline aligned with its strategies across the horizon.

RocSearch thoroughly examined the target company’s growth strategy, customer base, financial performance, goals, challenges and potential synergies with the client.

  • We evaluated the company’s financial performance, top-line growth and operational performance.
  • Subsequently, we conducted a cause and impact analysis of critical issues and challenges that the company was facing, supplemented by opinions gathered from industry experts.
  • We carefully reviewed the company’s operational and strategic goals and explored synergies between the two firms through an in-depth analysis of customer support and network infrastructure.

Business Outcomes

  • The output equipped the client with a detailed business view of the target firm, providing insight into its headwinds and tailwinds, eventually guiding its investment decision.
  • Our in-depth analysis helped the client explore synergies between the two firms and evaluate how well the target’s portfolio, growth strategies, performance and future plans would align with its strategic goals.

The output equipped the client with knowledge of the target firm’s headwinds and tailwinds, eventually guiding its decision to invest in the company.

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