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
For the fourth consecutive year, Stax was recognized by Consulting Magazine as one of the top "Best Firms to Work For"—earning the #2 ranking in our category for 2025. Read more about the award here.
Sagar Bansal and Jai Singh highlight key growth drivers ®gulatory tailwinds, as well as providing a future outlook on the drivers that are reshaping European wealth software. Read more.
DevOps tools enable developers and IT teams to collaborate more effectively, opening up the potential for intriguing ROI. Read why PE investors are becoming more interested in DevOps.
Stax Healthcare vertical has compiled the results of a recent survey, conducted by Stax, highlighting the changing landscape in the Healthcare industry. Read the full report here.
Phil Dunne was recently featured amongst several industry experts to weigh in on the growing takeover of Chinese EV manufacturers in Europe. Click here to read the full article.
Paul Edwards recently sat down with Management Consulted's Jenny Rae to discuss Stax’s growth journey and the positive impact of our partnership with Grant Thornton. Read more.