Sector Due Diligence | Portfolio Value Creation | Target Landscape Analysis

Business need

  • As part of its portfolio value creation strategy, a European private equity investor wanted to analyse the bolt-on target landscape for a real estate valuation services company.
  • It wanted to identify traditional and digital players operating in the real estate appraisal sector across multiple European and Non-European geographies.

Identify traditional and digital players offering automated real estate valuation and other related digital services.

The client outlined two key reasons for selecting RocSearch:

  • Our proven investment research and advisory capabilities and wide exposure to the European markets.
  • Our expertise in strategic pre-merger and acquisition diligence on target sectors and companies.

Approach and Methodology

  • Our investment strategic advisory initiated the study by gathering data and making screening sets for different geographies, covering the UK, North America, Australia, Nordics, France, the Rest of Europe and Others. We created a universe of potential target companies in the Real Estate Valuation Services segment, with at least EUR 1 mn of annual revenue.

RocSearch thoroughly examined the real estate valuation services market and the performance of key players worldwide and assessed if the market was ripe for pursuing a bolt-on expansion strategy.

  • Besides Property Valuation Associations & professional databases, we referred to previous sector studies and conducted expert interviews to identify relevant companies.
  • Subsequently, we prepared strip profiles as well as one-pager profiles of the shortlisted companies, covering their overview, size, ownership, financials, recent developments and valuation and classified them as Tier 1 and Tier 2.

Business Outcomes

  • The output equipped the client with market nuances and helped build a high-level understanding of the key players globally through the strip profiles.
  • The study identified real estate valuation service firms and related companies in the value chain that offered various digital services to real estate firms.
  • Based on our diligence, the client realised the market was not conditioned for pursuing a bolt-on expansion strategy and decided to take the organic growth route for the portfolio company until the market conditions improved.

The client realised the market was unsuitable for bolt-on acquisitions and decided to pursue an organic growth strategy for its portfolio company.

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