Case Study
Identifying high-value target investment opportunities for a global marketing procurement firm
Investment opportunity assessment | Target identification | Merger & Acquisition
Business Need
- The client, a global marketing procurement firm offering brand and marketing consultancy, was looking to acquire marketing procurement software firms operating worldwide.
- It wanted to identify high-potential investment targets, either operating as marketing procurement firms or in marketing software, procurement software or marketing consulting, by understanding their core services offered.
- It was open to companies that are family-/ founder-owned, Venture Capital/Private Equity-backed or corporate subsidiaries.
To identify global marketing procurement & complimentary marketing solutions companies for acquisition.
The client outlined three key reasons for selecting RocSearch:
- Our ability to rapidly deploy a team of experienced and highly skilled merger & acquisition specialists.
- The effectiveness of our unique RocEye target identification technique, acclaimed for its consistent success in pinpointing qualified targets.
- Our prior successful engagements with the client instilled confidence in our advisory capabilities.
Approach and Methodology
- We deployed our proprietary RocEye target identification approach. Our team of private equity consultants created a comprehensive universe of target companies sourced from market-leading proprietary databases and several marketing procurement industry associations.
- We shortlisted 120 right-sized companies meeting the client’s investment criteria and provided insights on their key offerings, financials, ownership details, and key stakeholders.
RocSearch screened 3,500 small and medium-sized companies in the marketing and marketing procurement sectors and recommended 120 ideal companies that met the client’s investment criteria.
- Our investment advisory team adopted a top-down approach to identify potential targets by examining the industry segment based on service offerings.
- After consulting with the client, we used company revenue and the number of employees to map the right-sized companies because the firm’s enterprise value was unavailable.
Business Outcomes
- The study provided a ready and actionable pipeline of highly relevant potential target firms, with information on their service offerings, business models and size.
- A detailed analysis of the company’s merger & acquisition history and growth or divestment plans enabled the client to map the right investment targets and make informed strategic decisions.
- The client was able to begin initial discussions with shortlisted targets and approached them for potential acquisitions.
The client was able to begin initial discussions with shortlisted targets and approached them for potential acquisitions.
