Business need

UK-based PE firm, specialising in growing and building companies with equity requirement of atleast €200 million

Business Objectives / Goals

  • Identify high growth companies as potential acquisition targets for investment with the following criteria:
    • Sector: Healthcare
    • Firm type: Private
    • Target size: Revenue range: €40- 250 mn | EBIT margin: >= 8%
    • Geographic focus: Target to be headquartered in Europe
    • Ownership:
        Not a subsidiary of a larger player.
        If a subsidiary, then not aligned with the parent company’s core business

Approach and Methodology

  • Implemented our proprietary RocEyeTM GrowthTM funnel-based deal origination approach to identify hidden gems
  • Identified relevant industry segments based on size, growth rate, degree of consolidation and PE buzz. For the shortlisted segment (‘Ophthalmic and Optical Technology’), we built a comprehensive list covering 1,000+ private companies leveraging databases, associations, exhibitions/conferences, news aggregators, news portals and social media
  • Shortlisted 315 companies based on business relevance and financial investment criteria.
  • Percentile ranked companies based on the financial KPIs and calculated weighted average scores (0-10) to measure relative attractiveness
  • Screened companies based on qualitative investment triggers, such as presence in growth segments, product precommercialisation buzz, stated expansion plans, recognition, partnership and M&A, management change, etc.
  • Shortlisted the top 10 percentile targets based on RocIndex score, in consultation with the client; Created a detailed target profile (investment thesis)

Business outcomes

  • 26% increase in client’s pipeline of potential targets
  • 1000+ analyst hours saved in deal origination
  • 32 investment gems identified from a list of 1,000+ companies

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