Case Study
Identifying acquisition opportunities in the enterprise application space for a US-based PE firm
Market Due Diligence | Target Identification | Merger & Acquisition
Business need
- A US-based private equity firm wanted to acquire an enterprise application software company, operating in the US or Canada.
- As part of the pre-investment due diligence, it engaged RocSearch to gain an understanding of industry dynamics, trends, and future outlook.
- It was on the lookout for high-potential investment targets, either market leaders in the segment globally or small players with a niche or emerging technology.
To map the global enterprise application software market and identify investment opportunities in the US and Canada.
The client outlined two key reasons for selecting RocSearch:
- Our proven investment research and advisory capabilities.
- Our knowledge and expertise in the field of technology.
Approach and Methodology
- Our investment advisory team adopted a top-down approach to identify the potential targets. We comprehensively examined the industry segmented by verticals, such as financial services and retail, products such as Enterprise Resource Planning and Supply Chain Management, and delivery models such as SAAS (Software as a Service) and SOA (Service Oriented Architecture). The market analysis included overall industry trends, PE/VC investments, and future outlook.
Using our comprehensive RocEye target identification approach, RocSearch carefully screened and qualified nearly 50 qualified companies to further shortlist 10 investment-worthy targets.
- Using our proprietary RocEye approach, we identified nearly 50 target companies meeting the client’s investment criteria and shared insights on their key offerings, financials, and key management.
- Having consulted the client, we further screened the target universe and shortlisted 10 companies, and shared their detailed profiles to facilitate further discussions.
Business Outcomes
- Our extensive research provided a detailed analysis of the global application software market.
- The study provided a list of nearly 50 highly qualified potential targets for the client.
- The client shortlisted 10 software companies from the identified targets and approached them for potential acquisition.
- The detailed profiles further assisted the client with their subsequent discussions with target companies for investments.
The client shortlisted 10 software companies from the identified targets and approached them for potential acquisition.
