Case Study
Providing pre-bid intelligence on a mid-cap European logistics company to a UK-based PE firm
Target due diligence | Opportunity assessment | Peer benchmarking
Business need
- A UK-based mid-market private equity (PE) firm was considering investments in a mid-cap European logistics distribution company.
- It mandated RocSearch to carry out preliminary due diligence of the target company, identify any business issues, and assess opportunities for value creation after the potential acquisition.
To obtain a detailed business view and assess the end-markets of the target company for value creation following acquisition.
The client outlined two key reasons for selecting RocSearch:
- Our proven investment research and advisory capabilities.
- Our ability to carry out strategic due diligence of target sectors and companies.
Approach and Methodology
- Our investment advisory team conducted an in-depth analysis of the target company’s distribution end-markets and focused on the long-term transformation that the sector was experiencing. We conducted extensive secondary research and interviews with senior industry stakeholders to identify key trends shaping the sector, benchmark peer companies and assess new growth opportunities for the target.
The study identified four key strategic buckets for the target to pursue across core business expansion, diversification, asset utilisation and cost optimisation.
- 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.
Business Outcomes
- The study provided highlights of the major short- and long-term challenges being faced by the target and the strategic options for pursuing growth
- Based on our assessment and the competitive benchmarking exercise, the client decided to retain its bid for the target company and consider other promising investment opportunities in the distribution sector.
The client decided to retain its bid for the target company and consider other promising investment opportunities in the distribution sector.
