Consulting to Private Equity Investors
Specialists in Due Diligence, Strategies for Growth
• To “win” proprietary deals today, you need to identify the ones to go after, develop strong conviction, lean in and ‘get the deal’. But how do you do this with 10+ PE firms seriously examining every deal?
• Usually there will be a deal that fits with your mandate, but there may be 2-3 threshold issues or missing pieces of information which do not allow you to be fully committed to take the next steps.
• However, if you could address these missing pieces, you would go after the deal with conviction and convince the investment bankers and the management team that you are the best buyer for the deal.
What are the missing pieces of information?
Is the Company truly an industry leader with the strongest reputation in its markets? Most recommended brand/vendor?
What growth rate for the Company should be assumed? Market growth? Gain share growth?
What is the health/plan of a handful of keys customers that make up a significant portion of the sales?
Are there 2-3 competitors who seem to be gaining share/winning customers?
Will the adoption of new technologies in the industry be a widespread trend or simply affect a limited segment of the target’s business?
Is there an adjacent market where the company has achieved some degree of penetration but would make the deal a “home run” if it truly were a great opportunity?
These are all questions that, if suitably answered, would change your calculus when going after a deal and help decide how hard to pursue and how much effort to focus and apply given limited time and investment.
Describing Our Unique Service:
The ‘Targeted Pre-Diligence Sprint’ (TPS) Engagement
The Lucas Group specializes in addressing specifically this problem using a solution within its services known as “Targeted Pre-Diligence Sprint (TPS)”:
“Targeted” – highly focused, examining usually only 2-3 issues threshold issues that help you make the “go / no-go” call
“Pre-Diligence” – occurs prior to the time that you actually have an LOI/exclusivity and are willing to expend significant resources
“Sprint” – the deal team is typically engaged for a very limited period – often only a week – during which time the team performs a “Deep Dive” data sprint and fully addresses the outstanding questions
Seasoned PE Consulting Professionals
Senior partners who have evaluated hundreds of deals proving objective judgment
Proprietary Data Collection Capabilities
Custom surveys designed and created in 24-48 hours, data synthesized within a week in “Deep Dive”
Network of “Niche” Experts
Bain alumni with nearly 30 years of client engagement relationships serve on teams for the duration of the TPS, providing guidance and, most importantly, opening up their ‘Rolodex’
Identifying Add-on Acquisitions
Two-week exercise to assess viability of add-on acquisition driven strategy. Determined the number of potential add-on acquisitions in the specialty chemical service industry and assessed viability of potential transactions through ~100 phone interviews.
Defining Market Growth Prospects
One-week exercise to determine market growth prospects in the home appliance parts sector. Completed over 30 interviews with market participants and determined that the interplay of opportunities and risks facing the industry, combined with the positioning of the target company justified above market growth assumptions in support of a successful bid.
Confirming Brand Positioning
Confirmed positioning of a manufacturing company in the context of a rapidly shifting market landscape moving from mechanical processes to electronic/digital capabilities. Completed multiple online survey with various constituents in a complex value chain, augmented by phone interviews with industry experts to confirm targets capabilities to compete in the new market