Case Study
TDI market assessment for exit strategy development
About the Client
A European Private Equity player with a diverse portfolio of investments in multiple sectors, including financial services, healthcare and manufacturing
Business Need
- The client was considering exit options for one of its portfolio companies and wanted us to perform an in-depth study of the global TDI (Toluene Diisocyanate) market to support this evaluation
- Geographical focus was the Eastern European market
Approach and Methodology
We divided the client’s requirements into three parts.
- Demand-side analysis:
- Impact of the global economic downturn on the current market demand
- Evaluating future trends, looking at major consumers (furniture and automotive industries) of TDI
- Supply-side analysis:
- Planned capacity additions to forecast expected supply
- Impact on competition and prices
- Regional analysis:
- Assessment of region-wise demand-supply gap, capacity build-ups and shift in demand to Asia
- Value chain analysis
- Industry cost structure assessment
Business Outcomes
- Client gained in-depth understanding of the industry (current performance as well as future potential); thereby, helping them make an informed exit strategy decision
