Evaluated investment opportunity and benefits of merging two competing firms for PE investor

Key benefits: Understanding on the target company’s performance and sustainable competitive advantages, coupled with strategic pointers on changes/options for the company to secure medium-term growth, including merging with an established manufacturer

Need

A global private equity firm wanted to evaluate the attractiveness of acquiring a Chinese component manufacturer and assess the synergies of merging the company with another local manufacturer.

Application: Mergers & Acquisitions

Geography: China

Approach

Challenged and addressed the target company's performances, growth plan and reputation based on feedback from external parties such as its customers, competitors, distributors and ex-staff. Benchmarked target company against its industry and closest competitors.

Methods: Secondary & primary research and benchmarking

Solution

Identified industry demand growth drivers/inhibitors, overall demand segmentation and future competitive trends. Assessed target company’s sales & marketing mix, product & technological edge, brand awareness, customer satisfaction and management reputation. Identified synergies and potential benefits were the target company to merge with an established manufacturer.