To support the potential acquisition of a subsea equipment provider, including evaluation of the robustness of the Target and its business plan
Provide an overview of the addressable market size and outlook, relevant to the Target’s current product and service provision
Evaluation of overall business case in order to identify key risks associated with the prospective acquisition
Westwood’s Approach & Analysis
Segmentation of the Target’s historical revenues by product line and sector, identifying key business levers and customer concentration/exposure
Employment of proprietary in-house offshore and subsea data enabling the generation of bottom up forecasts of relevant addressable markets
Competitive landscaping of similar providers in the supply chain, comparing the breadth and depth of manufacturing capability and service offering with the aim of identifying and validating its unique selling proposition
Detailing typical routes to market for subsea providers such as the Target in accessing its customers – direct access vs indirect access to end users
Comprehensive review of the degree of vertical integration of its core customer group, and the identification of perceived gaps in the supply chain
Review of the Target’s sales and marketing process impact, the competency of its current resourcing, and its R&D plan
The Outcome & Benefit
Target is well aligned to growth markets but needs to focus on improving its commercial capability in order to fully capitalize on its R&D efforts
The report outlined key customers based on forecast requirements, effectively serving as a shortlist for business development efforts
Recommended to hold off on the acquisition given the reactivity of the Target’s business model and it’s lack of product focus. The misalignment in management motivation also proved to be a concern
