Small/medium business-focused 3PL due diligence

Challenge

A major PE investor was evaluating the merits of a small/medium-sized business-focused 3PL acquisition candidate. With the target company in a unique market segment, the client sought specific industry and competitive insights, growth opportunities, and a risk assessment.

Approach

  • Market assessment: Analyzed the SMB market and the company‚Äôs target customer base.
  • Competitive benchmarking: Benchmarked service offerings and rates.
  • Internal capabilities: Prepared a SWOT analysis and assessed business model scalability.
  • Risk assessment: Identified economic cycle, market, customer, competitor/disruptor and company-specific risks to financial forecast realization.
  • Rollup potential: Developed alternative growth strategies, including adjacencies and new services/acquired service line extensions.

Results

  • Investment evaluation backed by solid research and industry insights.
  • Plan for profitable growth in new services and markets.
  • Risk assessment.