M&A Competition, Growth, and Technology Due Diligence for a Corporate Investor
“Amerinda’s expertise and service mindset quickly and effectively produced a high quality, insights driven analysis that enabled our Executives to make a strong, evidence-based acquisition decision. Our team also benefitted from several learnings during the engagement, supporting our continuous improvement principles. We would have no hesitation in using Amerinda again.”
Head of Commercial Strategy & Investments
Context
The client desired to invest in a technology platform company to grow its revenues. Use of the technology platform would increase the customer demand and satisfaction of the client’s core business. The investment would create new and diverse revenue sources for the client.
Given the importance of this investment decision, as well as the rapidly changing nature of this particular technology market, the client chose Amerinda Advisory to be their due diligence advisor, focused on competition, growth, technology and security.
ACTION
The market in which the target operated was niche, had many direct and indirect competitors and had many new market entrants to consider. Additionally, many of the current and potential competitors were private companies. As a result, Amerinda utilised an assessment approach which blended industry research with highly tailored customer, competitor and target interviews. Leveraging its industry knowledge and broad network, Amerinda provided a clear, precise view of how the target’s proposition, customer base and growth projections compared to its competitors.
The composition of a platform company’s technology stack is vital to its ability to differentiate and grow, both organically and inorganically through partnerships. The security risk level of a target is critical to the investor’s brand reputation and the overall value realisation of the investment, particularly in light of escalating cybersecurity breaches. Utilizing its deep technology experience, Amerinda provided a value and risk-focused assessment of the target’s current and planned technology stack across eight dimensions. This included an assessment of the target’s security posture, inclusive of its partners.
RESULT
Amerinda’s assessment provided the required level of clarity and legitimacy for the C-suite to make a quick and effective investment decision. Through the discovery of new insights and its engagement approach which emphasises education, Amerinda was also able to extend the client’s industry and technology mindshare. After the engagement concluded, Amerinda, additionally, provided the client with an investment capability model and lessons learned, as input to future investment decisions.