Share
Commercial Due Diligence (CDD): High-Pressure Equipment Products
Client and project overview
- A New York-based private equity firm wanted to assess the attractiveness of a leading provider in high-pressure equipment, as part of its acquisition due diligence process. The company assessed was a manufacturer of mission-critical valves, fittings, and tubing for use in high-pressure applications in industries such as oil & gas and waterjets.)
Key issues
- How fundamentally attractive are the company’s end markets?
- What is the company’s competitive position?
- What are the company’s growth prospects and what are the risks?
Methodology highlights
- Visited the facility before speaking with purchasers of high-pressure equipment on oil rigs and testing labs; waterjet OEMs; distributors; a range of competitors; and various market experts
- We drew on its flow control experience and combined these interview results with industry analysis. This allowed us to assess how the company’s products are purchased and the market drivers and trends which would impact the business
Results
- Concluded that not only did the company operate in a fundamentally attractive market but its unique value proposition provided it with a sustainable competitive advantage within its major customer groups
- Our work uncovered key insights which proved critical to the acquisition process and were highly valued by both the private equity and debt sponsors to the transaction
- We also highlighted a range of “go-to market” actions that the business was able to implement subsequently
Read More
Financier Worldwide discusses strategy and execution for accelerating value in PE carve-outs with Phil Dunne and Peter Rodrigues-Renon at Stax, including Gerard Nichol at Grant Thornton. Read more.
Investment focus in automotive technology continues to broaden beyond OEMs to the core service ecosystem. Read what Sameer Tejani and Max Massaro see in the market.
Grant Thornton Stax supported SteelEye, a leading trade and communications surveillance and data analytics platform, on its recent merger with FundApps. Read about the deal here.
As data center development shifts toward larger builds, demand for specialized service providers, offering backup power, electrical systems, and cooling infrastructure grows. Learn more.
Grant Thornton Stax Appoints Chen Liu as Partner to Drive Growth in Technology and Education Sectors
Stax, part of the Grant Thornton Advisors LLC multinational platform, has announced the appointment of Chen Liu as Partner. Read more about Chen and his responsibility with the firm.
Many PE-backed education companies struggle with commercial scaling. Miriam El-Baz, & Alex Erines share how to align commercial engines to how district and school leaders buy.