Private Equity

Conducting a Commercial Due Diligence in the Facility Management Sector for a European Private Equity Firm

Challenges

Opportunity to acquire a supra-regional provider of property management services

 

Indication of acquisition interest by the client, a private equity firm, to complement the existing portfolio in a value-enhancing way

 

Request to submit a non-binding offer in order to enter into exclusive negotiations and the related continuation of the due diligence process

 

Evaluation of the benefits arising from a possible acquisition of the target company along the following aspects:

Problem-Solving Approach

Conducting research and data analyses to test various core hypotheses regarding the attractiveness of the target company, especially with respect to:

Identifying the strategic key questions based on observable archetypical strategies pursued by competitors of the target company, in particular about:

Describing and discussing archetypal strategies through case studies of outstanding competitors

Results

First rough assessment of the attractiveness of the target company prepared and presented

 

Critical points, but no ‘red flags’ addressed

 

Non-binding bid submitted by the client (potential buyer) to the sell side with the aim of exclusive negotiations

 

Negotiation process—and thus also the due diligence—terminated by the seller in favor of another co-bidder