Share
Stax Supported a Top Global Investor Client and its Portfolio Company, a Leader in IT Security, in Due Diligence on an Add-on Acquisition Target.
THE SITUATION
- A leading global private equity investor approached Stax on behalf of its portfolio company, a leader in IT security, to support due diligence for an add-on to the portfolio company. The target is an emerging player in a network security category in which the portfolio company already has an offering sold outside the target’s core geographies.
THE ASSIGNMENT
- Our work tested critical deal rationale hypotheses related to the target, including expectations of growth and customer retention, channel perception of the target and its competitive set, potential for negative revenue synergies from brand conflict, and customer value of the target’s technology portfolio. Stax also sought to understand how well-received the target was outside its home market, which represented a sizable share of its business.
- The fact base for our work comprised about 240 phone- and web-based interviews across 6 markets in North America, Asia, Europe, and the Middle East.
THE BENEFITS
- The client and its portfolio company received a clear, data-driven perspective on both its critical deal rationale hypotheses, and issues the portfolio company would likely need to consider post-acquisition.
THE FINDING
- Stax found that customers planned to grow their installations in the near term, that they highly valued the target’s engineering prowess and strong customer support, and that customer satisfaction was high overall. We also found strong opportunity outside the target’s home geography.
- While we found a favorable outlook overall,
Stax identified some risk of conflict with channel partners, and some potential risk for negative revenue synergies in some of the target’s markets.
Read More
Grant Thornton Stax Director Sam Pinkes was recently featured by The Food Institute where she offered commentary around the growing humanization trend among pet owners. Read more.
We attended the RSA Conference, a premier flagship cybersecurity conference. Read our list of takeaways to learn about how cybersecurity assets will be impacted over the next year.
Grant Thornton Stax’s Paul Edwards, named a Top Consultant by The Consulting Report, joins RJ Lumba to discuss the award and life at the firm.
Grant Thornton Stax supported Uplift Investors on its recent acquisition of IMS Legal Strategies, a global provider of expert and advisory services. Read more about the deal here.
Youth sports has emerged as one of private equity's most actively targeted consumer categories, and Owen Tindle and Luke Scheibel share Grant Thornton Stax perspectives. Read more
Grant Thornton Stax supported CenterOak Partners on its recent acquisition of Grismer Tire & Auto Service, a leading operator of tire and automotive service centers. Read more here.