Transaction services
Analysing deal value and risks for private equity and corporate clients
PA conducts commercial due diligence for private equity and corporate clients across a range of sectors including healthcare, pharmaceuticals, life sciences, manufacturing, financial services, business services and telecommunications. Our due diligence experts focus on identifying the strategic deal value for the client and their target while helping to identify, quantify and manage key risks.
PA's service is strongly differentiated from traditional due diligence providers: we leverage our extensive sector insights to move beyond the financial due diligence process and tackle the key issues to determine the future value and performance of prospective targets.
The scope of PA's due diligence service
PA provides deep insight into deal value, by combining a robust commercial due diligence process with extensive market, sector and technical expertise. We investigate key issues including:
Market positioning
- is the target company's strategy and value proposition robust?
- are they operating in attractive, growing markets? What are their market dynamics, size, trends and structure?
- how strong is their market position, market share and customer base?
- do we understand their sources of differentiation and are they sustainable?
- how do they benchmark against industry KPIs?
Operational and technical capabilities
- how competitive are their core products and underlying technologies?
- how competitive are their core business processes and operations?
- where can operational improvements be extracted most effectively?
- how robust and scalable is their IT and infrastructure?
- how effective is their management team?
Financial projections
- how viable are their forecast business plans, revenue and EBIT projections and are their key assumptions valid?
- what is their potential revenue upside?
- how robust is their sales pipeline?
- what are their likely post-deal costs?
- what are their exit options?
The benefits we offer to our clients include:
- extending the scope of accounting-focused due diligence, rigorously testing and validating the future commercial prospects of the target company
- helping the acquirer to build its own bottom-up view of their target and its industry, gathering information directly from key customers, suppliers and competitors
- assessing the target's profitability, stability, market size and growth rates compared with industry benchmarks
- examining the capabilities of the target's management team, to assess its ability to create sustainable customer value
- a differentiated skillset that combines commercial due diligence experts with technical specialists who have sector-specific expertise in designing, developing and testing products
- the ability to answer key questions relating to business operations, underlying products and technologies.
Our track record
PA has a strong track record in delivering success. As an independent, FSA registered firm, PA Strategy Partners has assisted corporate clients, banks, venture capitalists and private equity houses in:
- due diligence reviews
- acquisition and divestment strategies
- debt restructuring
- asset valuation
- post-deal merger and acquisition support.
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