How we helped an Investment Bank in identifying a potential acquisition target for its MNC client

March 17, 2023

The Context

The client, a boutique Investment Bank, wanted the TresVista Team to evaluate a list of shortlisted companies in a particular industry/sector as a potential acquisition target. The client asked the team to provide in-depth information on all six target companies, highlighting the associated risks and opportunities for each of them to evaluate all the acquisition candidates objectively and rate them based on the parameters provided by the client.

The Objective

To evaluate acquisition candidates and provide an objective rating based on the parameters defined by the client to enable the company to make a well-informed decision after weighing in their strategic objectives.

The Approach

The TresVista Team followed the following process:

  • Identified relevant and comparable data points across all the target companies
  • Gathered uniform information based on the data points identified
  • Analyzed individual companies and identified the risks and opportunities presented by them
  • Evaluated the companies based on the parameters defined by the client
  • Compared ratings and visualized results using MARCI charts, radar charts, opportunity tables, etc.

The Challenges We Overcame

The major hurdles faced by the TresVista Team were:

  • Lack of Uniform Data: As the companies were a mix of public and private entities based out of different locations, therefore the availability of data was inconsistent
  • Objective Evaluation: Consistently evaluating all companies on the defined parameters in an objective manner without any biases

The team overcame these hurdles by segmenting the company research into broad and obtainable categories while looking at regional news reports and websites to collect additional data for specific companies. Additionally, all the data available in regional languages were translated using public source software, and the distorted financials were recreated in excel for better readability and understanding. Further, the team researched to validate all the translated information and fill in the research gaps.

Final Product (Sanitized)

The Value Add – Catalyzing the Client’s Impact

The TresVista Team built an interactive excel file for the client to modify the weights or ratings associated with a parameter, allowing them to visualize the results instantaneously. Moreover, the team identified additional parameters to gauge the opportunities presented by each of the target companies. The team further added individual company tabs, which were auto-updated based on the primary tab and provided a detailed breakdown of each company.