Due diligence and target screening
An investment fund specialising in the Aerospace sector wishes to increase its stake in a Tier 1 supplier to finance an external growth operation. A list of potential targets with level of interest is expected.
Challenge
Build an exhaustive list of potential targets even though the company has a multi-sector positioning. Sort this list considering the injunctions of the principals, sometimes contradictory, the level of operational performance of the targets and their financial health.
Solution
10+ client/expert interviews to assess the credibility of the business plan and the size of the markets addressed. Successive iterations with the OEM’s management to arrive at a target rating grid integrating 30+ criteria with different weightings. An initial list of 200+ targets narrowed to 10, and detailed profiles for those selected.