Pre-M&A due diligence | Competitive landscape | Customer intelligence

Business need

  • A Nordic private equity firm was considering investment in a software-as-a-service (SAAS) company, catering to the utility distribution sector.
  • As part of its due diligence, it wanted to assess the market for software systems for the electricity distribution end-market across Germany, France, the UK, Italy and Spain.
  • It wanted to understand the existing software solutions for electricity distribution companies, typical use cases, and engagement terms and gather insights on the major incumbents and challengers.

To understand the competitive dynamics of utility software providers in select European markets.

The client outlined three key reasons for selecting RocSearch:

  • Our proven capabilities in conducting investment opportunity assessment.
  • Our significant exposure to the European markets and a strong expert network.
  • Our expertise in carrying out strategic due diligence of target sectors and companies.

Approach and Methodology

  • Our technology and strategic advisory team analysed the utility distribution market in-depth, particularly power distribution in Germany, France, the UK, Italy and Spain. We identified leading companies in each of the focus markets. We shared emerging trends related to competition across segments, consolidation behaviour, and how the share of customers has evolved over the years.

We captured the trends shaping the market, pricing & engagement structures, unmet needs, challenges, vendor selection criteria of utility companies, and regulatory developments.

  • We identified how leading software providers were leveraging advanced metering, Internet of Things (IoT) and digital customer interaction to drive efficiency and quality of service.
  • We interviewed senior industry stakeholders to map end-use applications of their software, their preferred software providers, challenges faced while deploying software and factors considered for choosing software vendors.
  • We also tracked how the market was structured from a regulatory standpoint and highlighted the implications of frequent regulatory changes on the software providers.

Business Outcomes

  • The study provided a clear perspective on the competitive and customer landscape across the focus markets, enabling the client to assess the consolidation opportunities in the software utility market.
  • The findings enabled the client to get a fair understanding of the existing software solutions (architecture and functionalities) for utility distribution companies.
  • We also shared insights on the product portfolio, planned innovations, growth strategies and product roadmaps of large incumbents and related challengers.

The study provided a clear perspective on the focus markets, enabling the client to assess the relevant consolidation opportunities.

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