Case study

M&A target screening and selection for an HVAC manufacturer

Situation

A manufacturer of air conditioning components engaged a consultancy to perform screening and evaluation of acquisition targets in a new region. Delivery Partners assisted with target profiling and evaluation.

Our work

Initial company profiles and prioritization:

  • Created standardized company profiles (corporate focus, business units, products; financial highlights; number of facilities, employees, organization structure; basic distribution and sales network)
  • Prioritized initial target list

Detailed strategic / operations fit analysis and selection:

  • Analyzed strategic and operational fit between the buyer and the target (product / technology fit – innovation synergies with buyer products; sales and distribution fit – market access for buyer products; financial fit – acquisition price range, cash flow; organization and culture fit – future management, hierarchies, etc.)
  • Prepared short list of targets

 

Results

Initial company profiles are generated and detailed based on a strategic / operational fit analysis for subsequent approach and further evaluation.