- Service:Commercial due diligence (CDD)
- Sector:Support services
Issue
AMR’s client was a private equity company which was evaluating an investment opportunity in the German security services market. The target company was a mid-sized provider which had embarked on a buy-and-build strategy.
Approach
AMR began by providing an assessment of the attractiveness of the market, applying knowledge and understanding from prior investigations of the German and the UK security markets. AMR conducted an undisclosed interview programme with experts and end-users of security to gain relevant market intelligence. The next stage was a thorough analysis of the competitive landscape, whereby AMR identified a group of c 300 companies which could be attractive bolt-on acquisitions for the target.
Recommendations
AMR was able to validate the target company’s strategy and to recommend the investment based on its current competitive position and potential for future growth.
Result
The client was satisfied that the buy-and-build strategy was realistic and that the target company was the right vehicle to achieve it. It successfully completed the transaction.
Insight from AMR’s research
Despite relatively low growth and some evidence of price pressure, there were opportunities for profitable growth in the German security services market. The target’s buy-and-build strategy was feasible and gave it scope for cost savings and advantages in growing its business.