Investor identification | Comparable transactions analysis | Market assessment and overview

Business need

  • Our client, an independent corporate finance firm, was advising a German re-commerce company that was looking to raise venture capital funding to enhance the capability of its software solutions and support its growth and expansion plans.
  • It wanted to gain an understanding of the US and European markets, identify potential investors and determine valuation multiples based on precedent transactions in the sector.

To expand into the US and European re-commerce markets and identify potential investors for that purpose.

The client outlined two key reasons for selecting RocSearch:

  • Our ability to rapidly deploy customised strategic advisory and investment research specialists.
  • Our proven due diligence capabilities and flexible client-centric engagement models.

Approach and Methodology

  • We conducted a detailed assessment of the US and European re-commerce markets, diving into size, segmentation and growth outlook. Our insights helped identify key industry drivers, trends, challenges, growth outlook and the players operating in the target sector in the markets the client wanted to focus on.

Using our comprehensive RocEye approach, we identified more than 150 high-potential investors comprising private equity and venture capital firms, in addition to family offices with investments in re-commerce & e-commerce sectors.

  • We shared relevant investor profiles and provided valuation multiples of publicly listed companies operating in the focus sectors, based on which we arrived at a tentative valuation range for the target company.
  • We also assessed Amazon’s re-commerce business, sharing insights on its business segments and its strategic focus on evolving customer behaviours, sustainable re-use channels and developing agile and innovative teams.

Business Outcomes

  • An in-depth understanding of market dynamics and identification of high-potential investors fast-tracked the re-commerce firm’s fund-raising exercise.
  • Out of a list of 150, the firm shortlisted three investors, which was followed by advanced discussions with one of them.
  • The client successfully launched its business in new European markets and won a contract with two of Amazon’s leading fulfilment centres near Los Angeles.

The client successfully launched its business in new European markets and won a contract with Amazon’s leading fulfilment centre near Los Angeles.

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