Following is an example of our work, results, and approaches to sticky situations, opportunities and challenges.
Traditional, Post-LOI Market Diligence - A Case Study
An excited client was slightly nervous. They were pursuing a proprietary deal in an obscure, niche-y space.
- Management had no data on the external market dynamics
- Unwilling to share customer lists
- Not much insight as to their positioning in the market.
With thousands of customers, dozens of competitors, and a relatively insignificant share of a very large market, the business diligence would be critical.
Acclaro started the process by speaking with the client and management about potential hypotheses, assumptions, presumed opportunities (and threats) that could be tested.
We then brainstormed internally about all of the issues we would want to know if we were investing our own money in the deal. Recognizing our capabilities (and limitations), the timeline, and the costs of each research swim lane, we were able to get creative.
We conducted multi-disciplinary research design to include quantitative surveys, interviews with industry experts, development of lists of presumed customers and prospects, in-person meetings overseas (and telephone conversations domestically) with assumed customers and prospects, competitor conversations, and supplier interviews – all on a blind basis.
Needless to say, the study not only convinced the buyers to proceed with the acquisition, it more than paid for itself in terms of future revenue growth.
Acclaro was able to confirm most investment hypotheses, plus tee up four potential options for significant strategic growth moving forward. Without this research process, the client might have simply walked away for fear of the unknown.
Simply put, the sellers were blind to a number of real, quantifiable opportunities for near-term growth. Needless to say, the study not only convinced the buyers to proceed with the acquisition, it more than paid for itself in terms of future revenue growth.
We look forward to hearing about what’s keeping you up at night.
Christopher “Kit” Lisle, founder and managing partner of Acclaro Growth Partners, directs Corporate Development and Strategic Planning for Acclaro as well as lending support to teams delivering projects in M&A, marketing, corporate growth planning and quasi-turnarounds.
Kit's experience in market intelligence is based upon his military intelligence services as well as working for private companies. Prior to Acclaro, he served as Vice-President of Acquisition Services for Markowitz and McNaughton, developing extensive experience with market-entry analysis and market due diligence. During his military career, Kit served as an intelligence officer in the U.S. Army: he was a Eurasia Desk Officer in the Office of the Joint Chiefs of Staff at the Pentagon.
Acclaro Growth Partners is a research-based strategy consulting firm that provides market/business due diligence, strategic market insights, and market growth planning, serving private equity and corporate clients.