Acquisition opportunities for private equity firm

CLIENT

A US-based private equity firm with interests in the industrial sector.

OPPORTUNITY

The client was looking to invest in a company with activities in the industrials sector. The funds invested in this company were to be used for expansion in an unexplored vertical. The client engaged SG Analytics to build a detailed financial model that would cover multiple scenarios and determine the investment value using different valuation methodologies.

SOLUTION

Based on a detailed understanding of the client’s investment research process and valuation framework, SG Analytics adopted the following approach:

Our team created a 5-year quarterly financial model that identified key revenues and cost drivers of potential target companies.
The team focused on the growth path of these company by analyzing the geographical distribution of their products.
We performed a due diligence and figured that the overall market was growing at c. 6% CAGR, primarily driven by growth in end-user markets, such as automotive, metals, and mining.
We created a detailed model with drivers and switches that would be used to emulate different cost and return scenarios.
The team summarized all insights into a football field analysis that calculated a fair value range based on different valuation methodologies, including DCF and trading and transactions comparables.

Acquisition opportunities for private equity firm

CLIENT

OPPORTUNITY

SOLUTION

Value Delivered

Related Case Studies

Write to Us for More Information or No-obligation Consultation

Acquisition opportunities for private equity firm

CLIENT

OPPORTUNITY

SOLUTION

Value Delivered

Related Case Studies

RELATED SERVICES

DOWNLOAD WHITEPAPER

DOWNLOAD Case Study