Martin

Martin

  • Commer­cial Due Dili­gence Expert
  • More than 10 years of expe­ri­ence in Manage­ment Consul­ting and in the industry
  • Working expe­ri­ence in Europe, Asia, Latin America and Africa
  • Going to be a Fitness Coach soon

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Initial star­ting point of client

  • The company operates in a market chal­len­ging due to its price pres­sure and high competition 
  • Multiple stra­tegic part­nerships and joint ventures were performed, however, the company was unsure about their value creation
  • After a very poor Q1 and Q2, the senior manage­ment was requested by the board of direc­tors to make an imme­diate impro­ve­ment, asking for the following: 
    • An analy­tical deep dive into the company’s stra­tegic busi­ness model, which could help them secure a stronger market position
    • A list of possible targets in order to gain a stronger market posi­tion using a clas­sical due dili­gence approach
    • Recom­men­da­tions for a future stra­tegy regar­ding part­nership and evalua­tion of current partners

    Inno­va­tive approach

    • The star­ting point was a stra­tegic deep dive, which helped acquire an over­view of the company’s strengths, weak­nesses and a deeper under­stan­ding of market conditions
    • In order to achieve a common stand­point in the work with the CDD, it was important to create a “one company – one team – one goal” culture in the inter­ac­tion between the board and senior manage­ment. This was done by faci­li­ta­ting joint work­shops and openly discus­sing the findings
    • The internal CDD was expanded to an external CDD to cover the following: 
      • Analy­sing capital options in rela­tion to M&A activi­ties, and star­ting initial dialogue with finan­cial institutions
      • Analy­sing existing stra­tegic part­ners and joint ventures in order to find candi­dates for the target list. Since vertical inte­gra­tion was prio­ri­tised by the board, the natural star­ting point was to analyse stra­tegic part­ners, as company-specific infor­ma­tion was easy to access, and would give a full picture regar­ding the risk and rewards in rela­tion to a possible transaction

      Typical effect/result

      • The company gained a stronger stra­tegic posi­tion in the market by achie­ving the following: 
        • The internal Commer­cial Due Dili­gence report gave banks a clear over­view of the company’s market and stra­tegic direc­tion, and by that opened new credit faci­li­ties to the firm, cost reduc­tion of € 1 m in rela­tion to loans, and a new club loan faci­lity for the transaction
        • External Commer­cial Due Dili­gence led to a successful tran­sac­tion of a target
        • Fewer, but stronger stra­tegic alliances
Martin

Martin

  • Commer­cial Due Dili­gence Expert
  • More than 10 years of expe­ri­ence in Manage­ment Consul­ting and in the industry
  • Working expe­ri­ence in Europe, Asia, Latin America and Africa
  • Going to be a Fitness Coach soon

Want to get to know Martin?

Get in contact