Case Study 1
Engagement Type: Target Industry Analysis
Client Profile: The technology practice of a global asset management firm with nearly $30 billlion under management
Our client was considering a significant equity investment in a very well-positioned supplier of embedded systems. The proceeds of the investment would be used by the target company to make a critical strategic acquisiton as part of an effort to rapidly expand its offerings and capabilities. In order to evaluate the opportunity, our client needed to know much more about the target company's industry, companies the target might acquire in furtherance of its expansion strategy, the target company's competitors, and customer requirements.
"VDC Research teams provide exceptional due diligence support for private equity firms looking for true insight. Their analyses are thoughtful, current and actionable – essential for both us as investor and our management teams."
Paul Barnett, Managing Director
"Our work with VDC Research enabled an efficient, detailed exploration of our investment opportunity, and put our team in an excellent position to work with the management of the company that we eventually partnered with."
8 billion Euro global buyout fund
"VDC Research is able to augment our analysis, provide new perspective, and enhance the deal development process on a number of dimensions."
WestView Capital Advisors
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Core Issue Set
- How is the target company's market defined? Where does the target sit in relation to its peers?
- How do peers make money in this market?
- Are these sources of revenue and margin stable? Changing?
- What are the major technical and customer trends that the target will need to contend with?
- Deliver the most accurate, detailed definition of the target's core offerings, markets, peers and primary forces.
- Provide a highly customized tool that incorporates the unique elements of the target's offerings, markets, and channels, and enables the client to model and analyze market scenarios.
- Support the client during the course of the transaction, through on-site meeting participation, document preparation and review, and real-time, 24-hour access to VDC analysts.
- The client and the target came to terms on a minority equity stake, with the proceeds to help support the target's acquisition strategy.
- The deep market knowledge developed by our client as a result of VDC's work enabled the client to engage extremely effectively with the target's leadership team. As a result, a complex negotiation between two exceptional teams was able to progress quickly and efficiently toward a successful deal.
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