We help Private Equity firms and Corporate acquirers make sound investment decisions on new platforms, add-on acquisitions and divestitures.
Our M&A work includes:
Groove Strategy Group’s approach to M&A reflects our ownership mentality.
We help our clients to understand better the opportunities that may be available to a target company under their ownership as well as the risks.
- Focus on B2B companies, and the Industrials sector
- Access to many industry experts and participants that provide on-the-ground perspectives on issues that are important to our clients
- Experienced professionals that do the work – not an apprenticeship model
- Expertise gained through many post-merger integrations that help inform our upfront M&A work on what it will take to succeed
- Deep experience and track record in M&A with many transactions over 25 years on all sides of M&A transactions
Private Equity firms and Corporates hire us to help them better under a target company’s markets, what customers think of the target and how the target is positioned against competitors.
We help identify, analyze and pressure-test our client’s thinking on critical assumptions made for an acquisition to be successful.
In the case of a Corporate acquirer, the acquisition of a new platform may represent a significant expansion outside the core business. We help our clients test critical assumptions on what it will take to grow the acquired business, such as capitalizing upon customer relationships, capabilities, geographic reach and channels.
We help our clients to identify and assess potential revenue synergy opportunities that can be captured by two companies merging.
Our work focuses on identifying and assessing potential cross-sell and up-sell synergies that come from combining customer bases, product and service portfolios and geographic positioning.
Because today’s acquisition prices are typically high, acquirers need to dig deep to understand what customers want and how a combined company can offer greater value than either could alone. Acquirers sometimes make the mistake of assuming no revenue synergies in the deal model as they want to be conservative. While this may sound conservative, it is insufficient in today’s environment where customers may be looking to have a diverse supplier base. This could lead to a loss in business once the companies are combined.
We conduct thoughtful primary research to pressure-test a potential combination to understand customer needs, how they might respond to a change in their supplier base, and how they want to be served in the future. All of which provides our clients with a more in-depth understanding of the cross-sell and up-sell revenue synergy opportunities, the risks and how to integrate commercial organizations to capture the opportunities.
We understand the urgency our clients face to act and deliver results. Groove Strategy Group works closely with our Private Equity clients and their portfolio companies to translate the pre-close investment thesis into a post-close plan that is focused on capturing value.
We collaborate with deal teams and portfolio company management to:
- Validate key commercial assumptions about the growth prospects of the business, including more in-depth research and analysis on specific opportunities
- Assess how the investment thesis impacts the business post-close – sales and marketing capabilities, organization and resources, customers and channels, and follow-on acquisitions
- Help articulate the business case for specific value creation opportunities – financial impacts, resources and investment, owners and accountable teams, timelines and risk mitigation
- Challenge the ambitions and pressure-test key assumptions
- Conduct workshops and planning meetings to help generate consensus going forward
- Co-create an integrated program that is easily tracked and facilitates progress reporting
Benefits to our clients include:
- Greater clarity and conviction on the path forward
- Objective calibration on ambitions, goals, targets and timing
- Independent perspectives on what it will take to succeed
- Faster time to results
Private Equity firms bring in Groove Strategy Group to help throughout their holding period for a portfolio company, but often about 12-15 months before they begin a sale process.
This allows for sufficient time to make necessary commercial changes and demonstrate clear improvement in sales and margins that can help with the exit story and valuation.
We help Private Equity firms and their portfolio companies to:
- Quickly assess commercial strengths to leverage and gaps to close ahead of a planned exit process
- Identify potential strategic and commercial improvement opportunities that can actioned quickly
- Prioritize improvements to ensure focus is on those opportunities that can move the sales and EBITDA needle
- Develop an action plan to move forward and execute
We also assist Private Equity and Corporate clients with sales and divestitures.
Whether the need is to sell a portfolio company or to divest a non-core business, Groove Strategy Group is focused on helping our clients position the business for sale. We provide independent, evidence-based analysis on the company’s commercial position and future prospects.
Our work typically includes:
- Market segmentation, size and growth analysis
- Voice of the Customer analysis
- Competitive positioning analysis
- An assessment of potential growth opportunities that may be available to a strategic or financial buyer
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