Client Situation
Our client is one of the largest private equity (PE) firms in the world. It has over $98 billion assets under management. The client focuses on leveraged buy outs and IPOs. The firm covers manufacturing, oil & gas, chemicals, healthcare and several other basic industries. The firm has 9 locations around the world. In the case of this project, Cedar worked with the firm’s Tokyo and Hong Kong offices. The firm wished to sell its holdings in a specialty fastener manufacturer located in Southeast Asia. Our client needed an objective, third-party analysis of the company and the prospects for the global specialty fastener industry which would be shared with prospective bidders.
Cedar’s Approach
Cedar was mandated to quickly provide a global market and company due diligence on specialty fasteners.
- Collected secondary information from IDC, Gartner and others on the key specialty fastener end use markets.
- Interviewed end users, competitors and their intermediaries in North America, South America, Europe and Asia with a 15-person global Cedar team. All interviews were conducted in the respondents’ native languages.
- End use markets for disk drives, mobile phones, automotive, heavy machinery and many others were covered.
- Because of the time pressure of the transaction schedule, all of Cedar’s fieldwork and documentation were completed in 4 weeks.
- Worked with our PE client to identify market risks and opportunities and to determine the validity of the fastener company’s strategy and forecasted performance.
Outcome
The program was completed on time and contained accurate information and analysis of the specialty fastener market and the client company’s prospects and risks. The results included
- Forecasted demand for specialty fasteners by region and by end use industry.
- Forecasted demand for specialty fasteners by region and product type/specifications.
- Forecasted cross analysis of end use market, product type and geography.
- Evaluation of the specialty fastener company’s prospects, risks and rough valuation.
- Resulted in a successful transaction for the fastener company which exceeded our client’s initial offering value. Per our client recently: “We made a lot of money on that deal.”