Case Study 4
Engagement Type: Target Investment Alternatives Analysis
Client Profile: A top-tier supplier of mobile and wireless solutions operating in the Americas and EMEA markets
The client had recently undergone a major strategic shitf, with fundamental changes to its business model and taget markets. The results of this shift produced oustanding financial results, but the client did not see the results as sustainable without further refinement of its strategy. Convinced that continued growth would come from a combination of technology leadership and a large installed-base, the client began to search for acquisition candidates with strong IP portfolios and a large existing customer base. VDC was retained to help evaluate potential acquisition targets.
"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
- Which of the client's top ten investment opportunities did VDC Research agree represented the greatest potential for near-term and sustainable revenue growth?
- Which targets represented the best-in-class supplier of the tehnologies, solutions and services that made up the core value-add?
- What did the hypothetical combination of the client and select targets look like in terms of: core offerings, served markets, coverage, IP, capabilities, growth potential, margin potential and enterprise value?
- Which of the target companies offered the best fit with the client from a number of perspectives?
- Develop of a comprehensive set of future market and industry scenarios, including an interactive tool that enabled the company to run its own scenarios
- Develop detailed profiles of a number of potential investment targets
- Develop models of the client in a number of potential combinations with targets
- Analyze key issues and considerations in approaching each acquisition target
- Through the process of analyzing targets and modeling the combined entity, the client gained a focused, objective and eye-opening analysis of its own business. The client came to the surprising conclusion that it was not appropriately organized to maximize the value of an acquisition, and as a result, made a number of significant revisions to its business model and acquisition strategy. Ultimately, the client entered into a merger agreement with a competitor.
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