Acquisition Due-Diligence for Fortune Global 500 Corporation
Growth Decisions Inc. All right reserved.
About the Client
Company is a Fortune Global 500 worldwide manufacturer of specialty chemicals, fibers, and plastics. It had 44 manufacturing sites worldwide and $9B in revenue as of 2012. Among its products are key differentiated coatings, adhesives and specialty plastics products. It is also a major supplier of cellulose acetate fibers and PET polymers for packaging.
Business Challenge
The company continues finding ways to add value for end-users of its products. It was considering acquiring a long-term vendor that provides a complementary product. This potential add-on could have provided access to new distribution channels and captured more value across the system.
The company needed to evaluate whether or not proceeding with the acquisition was worthwhile by fully analyzing the market dynamics, target company performance and overall growth perspective.
How We Helped
Growth Decisions developed a project to provide insight to the company's management to make informed decisions about whether or not to pursue this opportunity. Eight key research areas were articulated as part of due-diligence:
1. Target company capabilities and historical performance
2. Market and competitive landscape
3. Product portfolio and services
4. Marketing and sales strategy
5. Business organization and people
6. Operations and manufacturing
7. Strategic planning and growth options
8. Projected financial performance scenarios and metrics
As a result of due-diligence, a recommendation about acquiring the target was made and implemented.
Growth Decisions’s well-rounded background allowed the company to perform a compressive review of the target’s competitive position and growth perspectives to obtain clarity about strategic fit. This helped the client make a decision that fit their strategic and financial objectives.
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