Market intelligence | Pre-M&A due diligence | Market entry strategy

Business need

  • As part of an inorganic expansion strategy, a German automotive component manufacturer was evaluating the market for three-point linkage, a type of hitch used for attaching ploughs and other implements to an agricultural or industrial tractor.
  • Considering potential acquisition opportunities in this segment, the client wanted to understand the market potential and competitive landscape of the industry globally with a focus on North America, South America, China, India (rest of Asia) and Europe.

To conduct pre-M&A due diligence for enhancing the client’s global market presence in specialised tractor parts.

The client outlined two key reasons for selecting RocSearch:

  • Our ability to rapidly deploy customised teams with the necessary skills.
  • Our proven M&A due diligence capabilities and flexible client-centric engagement models.

Approach and Methodology

  • Our strategic advisory team carried out a comprehensive assessment of the three-point linkage market’s potential, involving an in-depth examination of the overall tractor production in the focus geographies, three-point linkage production and the market prices by tractor categories.
  • We conducted interviews with experts from key players, original equipment manufacturers (OEMs) and trade associations to gather market-level insights and analysed the market’s driving forces, challenges, key trends and their impact.

We benchmarked more than 30 players globally on their strengths, key success factors, technologies, innovation, sourcing strategies and OEM order patterns.

  • We also assessed the players based on their financials, manufacturing and sales presence, rankings/share in the three-point linkage market and their presence in end-markets.
  • We captured market-level insights on the competitive landscape, level of consolidation and the share of independent vs. captive OEM production in various regions.

Business Outcomes

  • Our findings helped the client make informed choices regarding markets, product offerings and entry channels as part of its growth strategy.
  • The study provided learnings and insights on best practices and critical success factors of existing players and helped create a pipeline of potential acquisition targets for the client.

The insights helped the client make informed choices regarding markets, entry channels and potential targets as part of its growth strategy.

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