Post acquisition - commercial diligence
Client
The client is a £100+ million engineering and manufacturing group, based in the Midlands and South West England.
Research Brief
The client had recently acquired a small but profitable manufacturer of high quality thermoset plastic components, in an alleged high growth market sector. Sales growth was disappointingly low and the client wanted to know the reasons why.
Results
The research showed that the acquired company had an excellent image and performance rating amongst its customer base, but detailed analysis showed that although the overall market was growing, cheaper thermoplastic components were rapidly gaining market share at the expense of thermoset products in all but two small niches. The client sold off the company since it would not be able to achieve the requisite sales growth that had been anticipated.