M&A Transactions: Assessing market risks and opportunities
BUY SIDE
Fulcrum gives clients an information advantage as they navigate competitive deal environments.
In Acquisition Due Diligence, our depth of experience provides us the foundation to quickly understand the details of a target company, the nuance of its business model, and its relevant market drivers.
With a proven approach that avoids disrupting a target company’s business, Fulcrum is able to quickly establish a productive working relationship with management teams. We develop a proprietary fact set and apply detailed analysis to clarify deal risk and uncover future growth levers post-close.
SELL SIDE
Fulcrum works with clients to anticipate and proactively address questions that potential buyers may raise.
When engaged for Sell Side Support, we conduct rigorous market studies to pre-empt the work of other transaction advisors, allowing sellers and management teams to “come prepared” when divesting or exiting a business they own. Our market studies provide valuable data and support to arm clients with the information required to address important questions they may face relating to the market, competitive landscape, and customer base.
Whether we are engaged by the buyer or seller of a business, our understanding of markets, business model risks, and ability to identify strategic value allows us to help our clients and their aligned stakeholders reach a better outcome.
Answers to support M&A objectives:
Market Assessment
What is the addressable market opportunity? How fast is the market growing, and what segments are growing fastest versus lagging? How has this changed and what is expected going forward? What is driving change? Where will opportunity and disruption come from? What value proposition will be most successful?
Competitive Assessment
Who are the relevant competitors in the market? What are the relative areas of competitive advantage and disadvantage? How are competitors positioned and what is the competitive intensity? Which M&A targets demonstrate strategic fit? Are there new market entrants or other disruptors? What is unique to your value proposition?
Customer & Demand Assessment
Who are the key decision makers and influencers? What are customers’ purchase decision process and priorities? What options do they consider and what do they value? What is the customer segmentation? How is the company positioned relative to its competitors with its customers and the rest of the market?
ESG Assessment
What variables should be considered financially material and to what degree? What are the biggest risks and opportunities management should prioritize and with which KPIs? How is the company performing relative to industry benchmarks? How can we preserve and promote financial value during ownership? What are the priorities of key stakeholders? How can we collect the data our stakeholders need?
