Commercial diligence

Overview:

The Advisory team at DuckerFrontier is able to execute commercial diligence and market studies and pivot to your individual buy and sell side needs. Below you will find a recent case study outlining a expedited, comprehensive commercial diligence study based on transaction timing and special distressed situation. DuckerFrontier was able to assess multiple commercial aspects in a short period to assist a financial sponsor in the acquisition of a global form producer.

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Challenge:

Sponsor ‘Delta’ and its partners were reviewing an investment in a producer and seller of foam products worldwide. The foam market is in upstream in Delta required a comprehensive map of its positioning and potential advantages/ challenges within a very quick timeline (10 days, with daily updates as information and analysis was developed.

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Approach:

DuckerFrontier created a comprehensive market report to rate Sponsor Delta’s potential investment in terms of market attractiveness, growth feasibility, competitiveness, and other factors for decision making.

• Market overview: including size, trends, drivers of growth, regional demographics, and addressable market for the Target
• Develop segment attractiveness hypothesis and determine structure/growth/margin for the segment
• Identify GTM strategies, including revenue bridge for key applications and customers, sourcing/integration process of customers, etc.
• Competitive landscape: including share within key product categories and comparison of GTM strategies/marketing spend/product portfolio/target customer demographics

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Results:

Within 10 days, DuckerFrontier delivered a conclusive due diligence research report with an in-depth assessment of the NA automotive foam market. The report provided competitive landscape competitor dynamics, addressability, market acceptance/focus as well as total market size and growth. Delta was able to utilize DuckerFrontier’s assessment of the Target and its growth strategy to make an informed decision and successfully negotiate and close the acquisition.

DuckerFrontier’s advisory team is committed to helping sponsors, advisors and executives gain a clear understanding of market dynamics across our core industries, which include over 250 annual engagements in automotive & transportation, heavy equipment, industrials, building & construction products and healthcare . We combine our industry and market expertise with proven methodologies, access to industry participants and expedited processes, to provide clients with the highest quality insights and intelligence they need to make strategic investment decisions in shifting market landscapes. Contact us here to connect with a team member.