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Commercial Due Diligence for an M&A Transaction

02.02.15

Project Engagement:

Commercial due diligence as part of a buy-side transaction for the M&A and business development of a core corporate client.

Description:

One of our major European clients, leading manufacturer of building products, was considering the acquisition of a North American company. Our client asked Ducker to leverage it global footprint to conduct a commercial due diligence as part of its analysis of final valuation for the target.

The target company was active in Western Europe, North America, and Asia in 3 very distinct separate markets: including roofing underlayment and packaging for metal products. The company called on Ducker to meet the following objectives:

  • Develop a detailed market assessment: market size and segmentation by technology, competitive environment and profiles, manufacturer price levels
  • Assess the target company’s competitive position: strengths and weaknesses, unique value propositions, technologies, defensibility of their technologies, threats of share loss to new entrants, barriers to entry
  • Understand the ability to leverage our client’s organization and drive growth in each region and each market: competitors share and defining characteristics, key success factors and barriers, potential impact of target business in new regions

Approach:  

Ducker leveraged its extensive network of industry experts and value chain participants including DIY installers , related data sets and product knowledge, in the construction materials industry, using primary research and modeling.

Outcome:

Ducker commercial due diligence and conclusions led our client to discontinue the acquisition process due to limited adaptability of the target company’s technologies to other geographical regions and insufficient possible synergies with the client’s business.

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