Insight from our team of global experts expanded the client’s opportunities beyond a narrow and rigid investment criteria.
The Challenge
A leading advanced functional materials group that manufactures innovative materials for areas like consumer electronics and automotive had an established division with the aim of commercializing its materials platforms and reinforcing its organic growth strategy with a synergistic inorganic growth path.
The project scope included understanding market dynamics beyond the client’s current operating space and identifying potential acquisition targets complementary to profitable growth acceleration.
Custom Market Assessment and Development of Investment Thesis
Our team began with a comprehensive assessment of the functional additives market, including regions for potential expansion (e.g., EU27 and North America). Once the market was fully understood, the team:
- Developed an investment thesis
- Identified and profiled, by strategic discipline, prospective candidates that aligned with the client’s strategy
- Prioritized the most attractive candidates
- Determined actionability
- Provided buy-side advisory services
The Results
In this situation, ChemQuest provided a deep overview of many different specialty chemicals markets where these additives are used, offering numerous options for M&A pursuit. With the narrow set of investment criteria established by the client, it was challenging to agree on which companies to pursue. Our recommendations included redefining the client’s overall business strategy objectives and M&A scope in a second phase of work in order to fully explore the available opportunities.