Top Down
Top-Down / Thematic Investing
Deep dive into the sector of potential interest and identification of growth pockets across geographies based on the client’s investment criteria.
Broad Industry Overview
- Discuss the value chain or process flow of the broader industry
- High-level current and addressable market size and notes on growth outlook
- Major growth drivers, trends, competitive landscape, regulations, and sector economics
- Relevant regional and macro analysis
Industry Breakdown and Segmentation
- Segments can be categorized by products/services, applications, end-markets, geographies, etc.
High-Level Overview of the Identified Segments
- Definition of each segment and further categorization into sub-segments (by products, services, applications, end-markets)
- Size and growth outlook (for segment and sub-segments)
- Overview of specific KPIs, if any
- Relevant growth drivers, trends, competitive landscape, sector economics
Segment Attractiveness Evaluation and Identification of Attractive Growth Pockets
- Summary of all segments by level of attractiveness (low, neutral, high) and identification of the most attractive growth pockets
- Quantitative data points include relevant comparable KPIs, market size, growth outlook, penetration, market share, etc.
- Evaluation by qualitative factors such as cyclicality, seasonality, concentration/fragmentation level, pricing power, scope to differentiate, availability of actionable targets
Competitive Landscape and Targets Screening
- Identification of relevant major players and targets across segments
- Market mapping and operating margins analysis
- Detailed one-page profile on each of the player
Investors' 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
Networking Opportunities
- Industry specific Investment bankers / key influencers / financial advisors details
- Key industry events / conferences schedule
Investment Thesis
- Discussion of major growth drivers and trends that are influencing the industry
- Connecting the dots and highlighting positive investment attributes
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.
Value Creation Strategies/Playbook
- Identification of the most attractive position across the broader value chain and discussion on possible integration opportunities
- Discussing strategies to not get squeezed by large market participants and to the extent possible, analyzing precautionary measures for uncontrollable macro factors
- Assessment of value generation and go-to-market strategies