Our due diligence services rely on primary research – first and foremost. Lucas Group consultants – not third parties or outsourced services – craft surveys and interview guides in conjunction with the private equity team and company management (if applicable). Primary research is conducted using appropriate modalities (in-person, by phone, on-line) and directly by Lucas Group consultants. This data is then analyzed and synthesized by senior Lucas Group team members and integrated with secondary research and management and private equity team’s insights. Lucas Group industry or functional expert resources are incorporated as needed.
What we do
Typical due diligence projects cover one or more of the following:
- Market Assessment
- Competitive Position
- Strategic Review
- Strength of Customer Franchise
- Growth Prospects and Characteristics
- Major Threat Assessment
- Detailed Understanding of Business Prospects
- Opportunity Assessment
Due diligence assignments typically run from 2-6 weeks, are very interactive and iterative, and tend to formally kick off post LOI. The highest impact has been achieved when senior Lucas Group Partners are also involved prior to LOI, allowing us to offer preliminary thoughts and insights and prepare for rapid “ramp up.”
Our combination of intensive senior leadership, coupled with deep industry niche expertise, allows our teams to conduct analyses, develop insights and answer questions on a rapid, nimble and cost effective basis.
The Lucas Group has served as trusted advisor to private equity firms for over 25 years and offers a full range of mergers and acquisition (M&A) consulting services. At the heart of our transaction support services is our corporate strategy and data-driven analysis expertise. As a result of our many years of experience in private equity, especially in the lower middle market, we are able to provide unparalleled,
strategy driven advice.
of a deal:
- Acquisition Strategy/Target Identification
- Market Due Diligence
- Customer and Competitor Interviews
- Financial/Deal Modeling
- ‘120 Day Plans’
- Merger Integration Planning
- Post-Merger Integration Execution
- Follow-on Acquisition Growth Strategy
Senior Lucas Group Partners lead every acquisition related assignment and take a ‘hands on’ role. They are supported by experienced teams of consultants and analysts, including ‘industry experts’ who are assigned to each of our teams on a highly specialized basis depending on the assignment. We have found that this combination of intensive senior leadership, coupled with deep industry niche expertise, allows our teams to conduct analyses, develop insights and answer questions on a rapid, nimble and cost effective basis. Most important, it provides our clients with significant superiority in the quality of the insights we deliver.
Our experience working collaboratively and effectively with management teams of companies large and small ensures your portfolio company will not be overwhelmed while achieving maximum, actionable impact.
Our private equity and middle market focus is unique. With over 350 due diligence assignments and 100 portfolio company improvement projects under our belt, we have deep knowledge of the process and needs of our private equity partners. Rapid turnaround, fact-based analytics, and the “lens” of a PE investor are central to our approach.
The Lucas Group’s analytic approach to private equity consulting focuses on the most important – and potentially “deal killing” – issues first to avoid burning time and resources unwisely. We rigorously quantify and develop insights on growth, competition, market dynamics, underlying industry health, and target capabilities through primary research and independent fact-finding – not heuristics, third party insights, or conventional wisdom.
This creates a realistic and highly vetted view of the target’s landscape that can be readily integrated into deal financial models and provide superior forecasts of top line – as well as EBITDA –
prospects for the target company.
Our experience working collaboratively and effectively with management teams of companies large and small, from across the US and around the world, and from a host of industries and sectors means we know how to efficiently leverage portfolio companies’ managements’ time – we realize their primary focus needs to be on day-to-day operations of the business. Deploying knowledgeable and appropriately resourced teams ensures the portfolio company will not be overwhelmed while achieving maximum, actionable impact.
Long track record of delivering performance improvements:
• Across many industries
• Primarily North America
• Keenly focused on ROI and speed of execution
• While always mindful to minimize time needs from organization
‘Hands On’ Approach:
• Delivered by consultants with operational experience – in addition to consulting
• Tailoring solutions to unique needs of each specific situation
Lucas Group assignments in this area include:
True Profitability Analysis
Rapidly identifying ‘true profitability’ by customer, by product-line, by geography, etc. and uncovering the ‘80/20’ relationships that drive your company’s profitability. Then, putting in place actionable strategies to realize true profit potential on accelerated timeframe.
Strategic Sourcing/Purchasing Cost Reduction
An analytic approach to sourcing. Identifying your suppliers’ true costs and negotiating from a position of strength; Finding opportunities to develop economic partnerships with suppliers, collaborating to reduce systems costs throughout the steps in the value chain. Our teams have routinely help our clients save in excess of 15+ percent of their total spend in the areas addressed.
SG&A Cost Reduction
‘Delayering’ – Finding opportunities to ‘right size’ SG&A organizations and their related costs, often deploying a Proprietary Lucas Group Tool, the ‘Indented Org Chart’ to identify inefficiencies and hidden opportunities to streamline org structure, while also enhancing overall effectiveness.
Initiatives to eliminate or reduce unnecessary process steps, unprofitable products and unattractive customers to help our clients reduce cost, streamline processes and increase efficiencies. By applying the‘80/20’ principle, we help companies reduce or eliminate the wasteful many, while refocusing efforts on the valuable few.
Our teams have great experience in helping our clients achieve profitable top-line revenue growth and have even established a series of proprietary methodologies to accelerate growth.
Lucas Group assignments in this area include:
Strategic and Tactical Growth Plans
Rapidly assessing adjacent markets and developing “plans of attack” for growing businesses in attractive, profitable and penetrable segments.
“Go to Market” Strategies
Identifying optimal channels to maximize sales and reach; sales force assessments and organizational design; and sales force effectiveness tools and programs.
New Product Introductions
Key analytics to identify new product opportunities; ‘Outsourced Business Development Teams’ to help clients get traction on new opportunities, validating concepts prior to committing to fixed cost internal resource.
Pricing – Strategies/Optimization
Approaches – including ‘bundling’/’unbundling’ of products/services, pricing to ‘profitability,’ achieving recurring revenues, achieving ‘stickiness’ thru pricing strategies
Acquisition strategies leveraging strategic position and strengths to take advantage of growth markets/opportunities; including acquisition screening/identification; “fit” assessment; financial attractiveness; and post-merger integration.
Our professionals have led the way – including assignments as Fortune 100 Chief Transformation Officers, Chief Restructuring Officers and ‘hands-on’ portfolio company leaders and board directors throughout the middle market.
The Lucas Group has deep experience with corporate transformations, including strategic repositioning, operational turnarounds, and financial restructurings. Our professionals have led the way – including assignments as Fortune 100 Chief Transformation Officers, Chief Restructuring Officers and ‘hands-on’ portfolio company leaders and board directors throughout the middle market. We combine strategic principles from our Bain experience with the practical lessons from our ‘hands on’ work in numerous underperforming and distressed situations.
Lucas Group assignments in this area include:
Comprehensive transformation advisory services to architect transformation plans that identify and close strategic and operational gaps
Interim C-level Leadership
Deployments in key leadership roles to effectuate change and drive transformation results
Cash and Liquidity Management
Developing and implementing tools essential for preserving cash and improving cash flows
Identifying portfolio inefficiencies and Pareto opportunities (i.e., 80/20) across channels, products, production, divisions, and personnel
Capital structure optimization and financial stakeholder negotiations
Assessment of the corporation’s ability to transform, as well as the core levers of value creation in the context of underperformance and distress
Project Management Office
Hands-on deployments as PMOs to support management’s implementation of transformation plans