Case Study
Fund raising for an independent European PE firm
About the Client
An independent European PE firm, specialising in mid-market buyouts
Business Need
-
Identify potential acquisition targets for investment
- Sector: Manufacturing and services for agriculture
- Firm type: Private and public
- Target size: EBITDA range of €10-30 million, with EBITDA margin >= 10% (implied revenue range of €50-300 million)
- Geographic focus: UK, France, Germany, Ireland, Austria, Switzerland, Benelux and Nordics
Approach and Methodology
- Considering the high degree of fragmentation, and unstructured and niche nature of the sector, identified major segments based on technology and average size of firms.
- Few of the lucrative segments identified were smart farming and food testing
- For the shortlisted segments, built a comprehensive list of companies leveraging primary and secondary sources
- Percentile ranked public targets based on key financial KPIs and calculated weighted average scores (0-10) to measure relative attractiveness
- Screened private and public targets on investment triggers such as market position, stated expansion plans, partnership, focus on innovation, M&A, etc.
- Shortlisted 13 potential targets and created investment thesis for client’s internal evaluation
Business Outcomes
- 22% increase in client visibility on potential targets
- Assistance in raising funds to the tune of €0.8BN+
- 300+ analyst hours saved in deal origination
- 13 investment gems identified from a list of 500+ companies
