Supporting a UK mid-market PE firm conduct due diligence in the financial security solutions space
Market Due Diligence | Competitive Landscape Analysis | Risk Assessment
- A leading UK mid-market PE firm wanted RocSearch to conduct a comprehensive diligence of the B2B know your customer and anti-money laundering (KYC & AML) data solutions market.
- Specifically, the mandate for RocSearch was to do a thorough comparison of all the KYC & AML data solution products from the market leaders. The objective of the benchmarking was to identify the core strengths and potential areas of improvement for the target under consideration.
To analyse the B2B KYC and AML data solutions market, shortlist market leaders, benchmark their core capabilities, and identify white spaces.
The client outlined three key reasons for selecting RocSearch:
- Our proven investment research and advisory capabilities and wide exposure to the European market.
- Our track record of conducting primary-research-based detailed market due diligence.
- Our strong experience and understanding of the technology sector.
Approach and Methodology
- RocSearch team undertook a 10-week comprehensive due diligence exercise to estimate the current market size, growth projections, disruptive trends shaping the sector, competition and M&A activity, leveraging secondary research, proprietary databases, and extensive primary research expert consultations.
- The team captured the regulatory changes, recent developments in financial crime enforcement, and data on fines for non-compliance.
Benchmarking competitor data solutions was critical for this due diligence. Based on extensive expert consultations, we compared the products of all the market leaders against their reputation/trust, data quality, data breadth, software capabilities, price competition, and service quality.
- In all, the team conducted detailed interviews with 15 senior executives of all the market leaders to understand the core capabilities of their KYC & AML data solution product, potential weaknesses, market positioning, and competitive strategy.
- We specifically looked at the strength of each player focusing on configurability, artificial intelligence/natural language processing (AI/NLP) capabilities, and perpetual real-time KYC application programming interface.
- Our research helped the investment team to build a strong understanding of the KYC & AML data solutions market.
- The due diligence helped the investors identify unmet needs, potential whitespaces, emerging technologies, and price points, the target company used that to improve its product and gain market share.
- The dedicated team also freed up the client’s bandwidth to pursue another opportunity in tandem.
Our actionable insights enabled the client to understand the market and quickly close the deal and move towards value creation.