Sector:

Manufacturing

Service Lines:

M&A – Revenue Synergy Assessment, Buy-Side Commercial Due Diligence

Client Situation

  • A $1.5B manufacturer of plumbing, water and HVAC equipment was seeking to accelerate its growth with the potential acquisition of a competitor
  • If completed, the acquisition would be transformative for our client
  • Our client had done some analysis on the opportunity, but was missing critical perspectives on the potential for revenue synergies

How We Helped

  • Collaborated with management to understand and pressure-test the rationale and key assumptions it made
  • Quietly conducted primary and secondary research on the market, and on the target company, its offerings, customers and channel partners, and market position to understand strengths and gaps
  • Developed revenue synergy ideas and tested with customers and market participants to gauge interest and likelihood of buying from a broader and more integrated portfolio
  • Assessed how the combined company could be integrated to capture revenue synergies

Result

  • Delivered to the client an in-depth analysis on the potential revenue synergies of the combined company, including potential dis-synergies and related risks
  • Recommended a high-level commercial integration approach
  • With a refined valuation and a clearer negotiation strategy, our client avoided overpaying for the target