Acquisition Analysis
Understanding an acquisition candidate’s market is a critical part of the acquisition due diligence process. To thoroughly understand the market, it is necessary to gather intelligence independently rather than rely solely on information provided by the target company. Therefore, many companies seek third party, unbiased information on the market and the customer base before making a significant acquisition investment.
In producing acquisition due diligence studies, RSR will quickly assess an acquisition candidate’s market position, and determine the likelihood of success in making the acquisition.
Benefits Achieved
Detailing the relevant threats and opportunities that will impact the potential acquisition.
Market Analysis
- Market size and growth
- Market segmentation
- Market shares of the major competitors
- The candidate’s key strengths and weaknesses
- Key trends and factors affecting the market
- Key regulations impacting the market
- Potential threat from new products, suppliers, etc
Customer Analysis
- Customer’s current and future purchases
- Customer’s view of the acquisition candidate relative to other suppliers
Relevant Case Studies
Making the Right Acquisitions
An industrial component supplier sought to take advantage of the market turmoil and acquire a struggling competitor in a related segment. After meeting internally to discuss the attractiveness of the segments and the companies, it became apparent that there were...
Determining Synergies from Acquisition
An industrial equipment supplier was evaluating the merits of making an acquisition. The acquisition candidate of interest manufactured complementary products to the Client’s and marketed them to a strategic, underserved market segment. The acquisition price, however,...
How Best To Integrate An Acquisition
A leading process controls manufacturer recently acquired a diverse, multi-product instrumentation company. The acquired company’s portfolio included a product based on a technology that competed against one of the Client’s existing product lines. The Client was...