Evaluating New Growth Opportunities for a Commodity Data and Intelligence Provider

Client and project overview

As part of a commercial due diligence (CDD) project, AMR (acquired by Stax in 2022) helped a global commodity data and intelligence provider review the market for petrochemical pricing. We also investigated the value of synergies between the target firm and the client. We were able to help the client identify several growth opportunities in adjacent segments.

Key questions

• What is the structure, key trends, and future landscape of the petrochemicals market in the U.S.?
• What are the drivers of value for the combined client and target’s offering?

Highlights of AMR’s Methodology

• Conducted a voice of customer-led project holding customer survey and in-depth telephone interviews to assess the value proposition of the asset as well validate the growth synergy assumptions between the client and the target
• We also produced detailed comparative case studies between the target and its competitors to contrast their product coverage (geographic, upstream vs downstream), market feedback, and forecasting methodology

Results

• We were broadly supportive of the growth opportunities for the combined client and target proposition but highlighted some risks which required mitigation
• We helped the client identify synergies across geographies, based on customer overlap analysis which provided a view on growth opportunities
• We also identified three operational features that influence a customer’s need for U.S.-related petrochemical data to suggest a new cross-sell strategy approach. This highlighted a specific ‘sweet spot’ opportunity to cross-sell to multinationals dealing with standardized products