Case Study 07

Acquisition Prospect Development work transitions into successful due diligence

Situation

Clarity was enlisted to identify acquisition prospects according to several defined criteria, including size, products, and market served. Our profiles included a preliminary assessment of each prospect's orientation toward being acquired. This Acquisition Prospect Development (APD) work had been preceded by a Clarity study of the overall target market, in terms of size, growth, trends, substitute products and other considerations that would indicate it attractiveness to the client.

Outcome

Clarity presented our findings to management, informed by our recent market study and knowledge of the relevant trade. We were able to advise the client on the underlying synergies and how each viable prospect mapped against the objective of entering this complementary market through acquisition. In Phase 3, Clarity worked under a buy side success fee arrangement where all due diligence fees would be refunded against our success fee if a deal could be completed with one of the defined prospects. Clarity leveraged our intimate understanding of the market to advance the dialog with the acquisition candidates, successfully facilitating a deal.