The problem: Not surprisingly, potential buyers shy away from investing in relatively small companies in enormous, slow-growth, highly regulated markets dominated by global market leaders. In this case, the sellers opted to commission a sell-side growth opportunity assessment to place in the data room for potential buyers to see an objective assessment of the Company’s prospects.
The solution: Acclaro wanted to focus first and foremost on creating an unbiased report that could credibly portray the relative attractiveness of its markets, as well as the positioning of the company in these markets. Painting a credible picture of the Company from the external perspective would require conversations not only with customers, but also prospects, lost accounts, competitors, channel partners and industry experts.
The result: While management could certainly proclaim how unique, value-add, and necessary it was in its market, it had no ability to back up these claims. Their veracity would be challenged as the management team was clearly excited about the future and proud of their past. Our third-party report, which teed up much of the story management had wanted to share, was able to convince buyers to bid confidently. The combination of an external, third-party study providing the data, and a management team ability to leverage that data to tell their own compelling stories of success, was invaluable.