| Earth moving and mining contractor |
Context / Scope of project
Our client, a leading Australian private equity firm, wished to invest in the expanding Australian resources industry in an area they didn’t have significant experience, specifically in the mining contracting sector. The PIP team undertook a rapid review of a target company within the specific market including, market structure, market growth, target performance within market and competitive performance of the key players. PIP also reviewed the immediate growth opportunities of the target, how the target’s market positioning aligned with market forecasts, the business risks and challenges to future performance, and potential acquisitions for the target. Based on this work PIP formed a view on the forecast and long term financial performance and associated value levers and risks.
Client Achieved:
- Comprehensive assessment of the target positioning within the market with strategic insights into the likely long term financial performance of the target
- Client could add significant value to the target through a reinforcement of the key capabilities
- Focusing on market segment with growth potential and few competitors
- Exploitation of investment spike and growth within market
- Addressing hygiene factors to unlock operational value levers
- Exploration and understanding of some challenges to future growth
- Competition and customer requirements / perceptions limit target growth in some market segments
- Revenue profile concentrated in few key contracts creates significant risk around revenue pipeline and ability to translate presence in the market into an expanded order book.
Outcome:
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