Commercial due diligence on gasoline powered hand-held gardening equipment for PE investor

Key benefits: Client gained 3rd party opinion on the attractiveness of the target, its current standing in the marketplace relative to competitors, and its growth potential. Client decided to not pursue the investment in the target company directly as a result of these findings.

Need

A leading global PE firm wanted to validate management claims pertaining to success of their product (e.g. market receptivity), better understand the market opportunity, and the target’s competitiveness.

Application: Strategic Planning

Geography: Mainland China, South East Asia, North America, Europe and Africa

Approach

Mainly primary research supplemented by secondary information. Interviewees included equipment manufacturers, equipment distributors, equipment retailers, equipment end-users, industry experts, and relevant associations, etc.

Methods: 20% secondary & 80% primary research including 61 executive interviews

Solution

Provided fact-based opinion on investment opportunity, target’s competitiveness on various dimensions, and identified a series of critical weaknesses which proved to be show stoppers.