Business need

  • 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

Business Objectives / Goals

  • Identify potential acquisition targets that are under financial distress:
    • Sector: Healthcare
    • Firm type: Private
    • Geographic focus: US, Canada and Europe

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

  • 38% increased visibility on potential targets for the client
  • Assistance in raising funds to the tune of €350M+
  • 300+ analyst hours saved in deal origination
  • 14 investment gems (highly or moderately stressed) identified from a list of 1000+ companies

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