Bottom Up
Bottom-Up / Primary Due Diligence
Customized and unbiased target-relevant market opportunity and
competitive intensity assessment reviews along with actionable value creation strategies.
Detailed Target Overview and its Focus Areas
- Company profile and highlighting the major products/services offered and end-markets
Presence and Placement across the Broader Value Chain
- Company’s positioning across the broader value chain analysis / process flow
- Major market participants overview
- Formulating strategies to not get squeezed by large market participants
Market Opportunity Assessment
- Growth dynamics of the relevant industry and related end-markets
- Current and addressable market size and penetration
- Growth drivers and secular trends driving the market
- Relevant local and regional analysis to understand target-specific industry trends
Assessment of Competitive Intensity
- Market Mapping and sector economics
- Pricing / bargaining power assessment
- Analyze financials (KPIs and operating numbers) of the most relevant public company and compare them with those of target to comment on the historical / projected growth trajectory
Go-to-Market Strategies
- Value generation opportunities – examples here include introducing more products / services or scaling operations into new geographies
- Buy and build strategies to facilitate inorganic growth
- Backward / forward integration opportunities across the value chain
Investment Thesis
- Connecting the dots and highlighting positive investment attributes
- Fact-based validation of the client’s hypothesis for the given industry
- Discussion of major growth drivers and trends that are influencing the target’s industry
Investment Risks / Concerns
- Layout of the key industry-specific or macro headwinds that may hinder the industry’s performance going forward
- Comment on concentration, pricing variability, cyclicality, seasonality, new technology or disruptive business models risks, etc.
Investor's Interest
- Recent private equity and strategic transactions across segments along with major exits
- Trading comps of most relevant public companies
- Detailed case studies on specific relevant private equity transactions to discuss the deal consideration and validate value creation playbook