Case Study Overview
- The industry: The client operates in the commercial fit-out industry.
- Turnover: The annual revenue turnover for the client is over $25 million.
- Ownership Structure: The company is a family-run, privately-owned business.
- Project and Referral Trigger: The initial trigger for the project was the client's interest in acquiring a competitor to expand their market share and capabilities. Active Directions had previously been engaged to provide strategic planning support.
Our Approach
To deliver the project, we followed these key steps:
- Accelerated Financial and Non-Financial Assessment: We conducted a rapid and thorough assessment of the target company's financial health, operational performance, and market position.
- High-Level Go/No-Go Decision: We provided a high-level analysis to help the client make an informed decision on whether to proceed with the acquisition.
- Future Due Diligence Recommendations: We outlined the necessary steps for further due diligence to support the investment, including financial modelling, operational assessments, and legal considerations.
- Strategic Alignment: By evaluating the investment opportunity, we ensured that decisions were data-driven and aligned to the strategy.
Project Outcomes
The project resulted in several key outcomes:
- Informed Acquisition Decision: The client was able to make a well-informed decision on whether to proceed with the acquisition based on our high-level analysis.
- Strategic Recommendations: We provided strategic recommendations for future due diligence, ensuring that the client was prepared for the next steps in the acquisition process.
Key Questions to Get the Conversation Started
- What are your long-term growth goals, and how do you plan to achieve them through acquisitions?
- How prepared is your business for an acquisition and integrating the operations?
- Have you considered different growth options that do not require acquisitions?
By focusing on these areas, partners can help their clients navigate the complexities of strategic acquisitions, ultimately driving business success and enhancing enterprise value.
Please book an appointment if you would like to discuss your client's consulting needs further.
