Our knowledgeable team’s detailed assessment and analysis resulted in a successful deal close.
The Challenge
A private equity firm reached out to ChemQuest and asked us to assess the attractiveness of a business they considered a potential acquisition target in the adhesives market.
We assembled a collaborative team with longstanding relationships and expertise in adhesives to evaluate the market size and dynamics, existing technologies, growth and innovation pipeline, supply chain, perception of the players in the market, level of customer satisfaction, and exit plan scenarios.
Custom Market Analysis and Development of Investment Thesis
Four main factors comprised the scope for this project: market analysis, supply chain dynamics, commercial evaluation, and investment thesis.
Market
Analysis
- Analyzed the market size and conditions
- Assessed market drivers and shifting technologies
Supply Chain
Dynamics
- Evaluated raw material precursors, competing applications, and supply/demand balance of target and other players
- Evaluated supply chain dynamics outside the U.S., as well as influence on the U.S. market
Commercial
Evaluation
- Assessed the level of current customer satisfaction through direct interviews
- Evaluated the potential acquisition’s portfolio and assets; identified strengths and gaps
- Evaluated the growth pipeline and value creation potential through new products, market segments, and resources
Investment
Thesis
- Identified potential acquisition and divestment targets
The Results
The ChemQuest team used their in-depth industry knowledge to evaluate criteria relative to structural attractiveness, fit, feasibility, and ability to win in light of trends, competitive positioning, and product portfolio. They identified areas to address based on competitive analysis and interviews, as well as needed characteristics for next-gen products in each region vs. the innovation pipeline. Finally, the team recommended specific actions to optimize profitability and spur growth.