Our due diligence work is high quality, analytically robust, and reliably-informative for investment decision-making, and encompasses the whole gamut of value creation opportunities – both customer & market growth potential AND operational realities and gaps, cost savings, and CapEx avoidance opportunities.
Established target’s category presence, built a model to project category growth, interviewed buyers to establish competitive positioning, visited plants to establish CapEx and operational risk, assessed commodity price margin risk, and conducted in-depth diagnostic of material yield, direct labor, and inventory costs
Pinned down capacity and CapEx situation by creating plant-specific profiles of 150+ pieces of production equipment; identified ~$6MM in margin improvement opportunity by reconciling financial data from target’s ~100 P&Ls and establishing true operational costs and production/distribution cost benchmarks across plants, branches, and routes
Established municipal budget outlook, market size and growth outlook for wastewater infrastructure services, as well as target’s competitive positioning; effort included 124 interviews with municipal and utility officials, in-depth research of environmental regulations, top-down/bottom-up municipal budget analysis, and creation of 3 bottom-up market sizing models
Evaluated competitive risks from large converters, potentially high CapEx requirements, and the target’s reliance on 9 key accounts by interviewing 50+ competitors, customer brand/packaging managers, and printing equipment OEMs, as well as by researching flexo press technologies, end-market dynamics, and flexible packaging market/competitive dynamics