Pre-Engagement Due-Diligence for a Potential Acquisition Target
To a leading European private equity investor
- The client was conducting preliminary due-diligence of a logistics distribution company in Europe for a potential investment.
- It wanted to identify the key business issues with the target and assess the opportunities for value creation after acquisition.
To obtain a detailed business overview and assess end-markets of target company for value creation after acquisition
The client outlined two key reasons for selecting RocSearch:
- Our ability to rapidly deploy customised teams with the necessary skills
- Our proven M&A capabilities and flexible client-centric engagement models
Approach and Methodology
- Our research and advisory team conducted an in-depth analysis of the distribution end markets that the target was present in and focussed on the long-term transformation that the sector was experiencing.
- As one of the largest overnight logistics networks in the UK and Ireland, the target was facing top line pressures but had managed to stabilise operating profits.
- The study identified key post-acquisition value creation strategies for the target to pursue new pathways to growth. It also recommended execution synergies from the client’s prior experience of investing in this sector.
The study identified three key strategic buckets for the target to pursue across core business expansion, diversification, asset utilisation and cost optimisation.
- The team conducted extensive secondary research to benchmark peer companies, identify key trends shaping the sector and analyse new growth opportunities for the target.
- Our research analysts also carried out interviews with senior stakeholders in the logistics and distribution market in the UK to gather insights.
-Highlights of the major short and long-term challenges being faced by the target
-Strategic options for pursuing growth
-Client bid for the target based on our opportunity assessment
Based on our findings the client decided in favour of bidding and was successful in acquiring the target.