With impressive growth targets, our client sought to expand organically and through acquisitions. The focus was on acquiring a single large-sized or two medium-sized convenience retail companies in China.
Euromonitor was contacted for the pre-screening phase of research which was followed by more thorough due diligence. The client desired a long list of potential M&A targets based on a set of initial criteria and shortlisted profiles.
We began by understanding our client’s criteria on the ideal acquisition target. This included parameters on company size, revenues, geographic presence, product portfolio, customers and manufacturing capacity. Following these initial conversations, we analyzed data from Passport for matches and company annual reports for complementary information. We created a scoring system by which each company was ranked according to its relative position on each of the defined characteristics. A total score was then calculated for each company, creating a ranked list of best matches.
Our team hosted a workshop session with our client where we shared our reasoning on the ranking. The workshop resulted in a shortened list, tailored to support further filtering and analysis by the client.
The client is currently analyzing the resulting company list and plans to contact us for subsequent stages of research. Upcoming stages would include interviews with the remaining players as well as other market operators. There would be further weighing and scoring of this group. Finally, there would be the development of a second database containing a more refined list of potential companies to acquire.
A third research phase would include more-complete company profiles, including specific information on strategic direction, organisational structure, resources and capabilities. Ultimately, this would allow our client to determine the best acquisition targets and move on to more in-depth phases of the due diligence process and business integration.