Due Diligence Assessments
Support to M&A strategies and decisions
Financial due diligence
Commercial, strategic profiling
Production and process comparison
A global automotive components manufacturer, needed to understand the investment profiles (as well as state / government linked incentive structures) of three new, multi-million dollar, green field competitor factories in the U.S.A. and Latin and Central America (various provinces). In detail, needed insights were linked to:
- CAPEX (land, site preparation, building, utilities, machinery, engineering etc.)
- Financial deal structures with lending entities, staffing levels and compensation principles
- Capacities, production methodologies and key machinery.
Our client was in the final stages of selecting the location and investment profile of its new factory and needed to benchmark its own approach to recent competitor investment approaches, especially linked to unit output per day / $ invested (as the overall key metric).
The triangulated evidence pool gathered and associated analysis, allowed our client to truly understand not just the relationship between plant capacity and $ spent for the various competitors, but also provide a unique qualitative insight into how they overall approach investment decisions, their critical factors and decision points, as well as well as shed light into their negotiation strategies in their interactions with state authorities, prior to final country and site selection.
The solution consisted of several phases:
- Phase 1: Series of workshops with key client stakeholders in order to understand the principles of manufacturing and plant setup and generate initial hypothesis for competitor investment principles
- Phase 2: Review of available secondary insights and specialist reports
- Phase 3: Intensive primary research effort, interviewing current and former competitor employees, suppliers and personnel from state authorities
- Phase 4: Final workshop to interpret results and draw conclusions.
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