 |
 |
| Earth moving & mining services provider |
Context / Scope of project
Our client, $500m listed company (branching into a new sector) and wanted to ensure it carried out disciplined commercial due diligence. PIP was asked to conduct a rapid review of the business and outlook in its regional market, growth, competitors and competitive advantage. PIP also reviewed the immediate pipeline of opportunities for the target and the likelihood of success. Based on this work PIP formed a view on revenue and EBITDA.
Key Insights:
- Forecast good pipeline of future work – detailed list
- Very high margins – likely to reduce but likely to remain top quartile in industry
- Revealed strong customer preference
- Regional competition not strong
- Entry of national player would be detrimental BUT strategic options exist.
Outcome:
- Client invested in the business.
|
|
|
|
|
What we did:
- Provided focused insight into key market drivers, dynamics and outlook
- Reviewed target’s competitive positioning and growth options
- Drilled down on expected project wins to pressure test target’s revenue pipeline
- Evaluated the very large margins of the business and determined how much of this margin was due to: excessive demand versus good internal practices.
|
|
|
|
