We designed the GrowthPilot Diligence Boost to contribute significantly to your valuation assessment of an acquisition target or speed decision-making regarding post-closing assets that may not be a good fit with your strategic goals. We run these project rapidly—they are typically completed in less than thirty days—and they are particularly helpful in two situations:
You are making a large acquisition and want to know the value of a business unit that has nothing to do with your strategic goals for the acquisition itself: should you spend time and effort on this unit, integrating them, learning their business, understanding their customer segments, evaluating their markets and trying to grow them? Or should you divest post-closing?
You are eyeing a small acquisition to add a specific technology, material, or capability to your company and want to know if it is the best option available.
The project will rapidly answer these questions so you can make decisions with increased confidence, retaining the assets that will deliver solid returns while shedding those that will not support your strategic goals.
Questions that are typically answered by a Diligence Boost project might include the following regarding a small acquisition or a business unit of a larger acquisition:
What are the characteristics of the market where it is competing? Is is growing or declining, and—if growing—is the asset well positioned to participate in that growth?
How do their products/technologies stack up against competitors in the same market? Who are these competitors and what is the likelihood any might be interested in acquiring the asset?
Could changes in its business model, product modifications or additional investment bring it more in line with your strategic goals?
What are business valuations like in their space? If you decide to divest, will you be able to get a good price?
As with all our projects, we will make concrete recommendations as to next steps, and you will have access to all the information we used to arrive at those recommendations.