Stressed asset identification for a European PE firm

About the Client

• Client is a private equity firm, with investment focus in Europe on companies that require minimum equity investment of €100 million
• Sector focus: Business Services, Consumer, Financial Services, Healthcare, Industrials, and Technology, Media and Telecom

Approach and Methodology

• A comprehensive data set of companies in this sector and geography was created using information collated from proprietary databases, associations, Meetings, Incentives, Conferencing, Exhibitions (MICE) events, news aggregators, etc.
• More than 10 themes were identified to develop a robust framework that could identify companies in different stages of distress. The themes were restructuring, legal proceedings, management changes, payment defaults, etc.
• Weights for each theme was fixed and triggers were used to arrive at a consolidated score for each target to measure the relative attractiveness
• Triangulated trigger analysis with the quantitative analysis (revenues/ employees, wherever available)
• The final output was shared in the form of a monthly newsflash, highlighting the recent targets under distress

Business Outcomes