Container leasing business due diligence

Challenge

Two teamed private equity firms faced the challenge of obtaining objective insight into the market and customer outlook for a leading global ocean container lessor. This is a highly competitive global business, featuring a complex interplay of trade growth, vessel newbuildings and ship operator profitability. Each shipowner also faces a choice of owning containers or leasing them. We were asked to answer a set of tough questions over a very tight timeframe.

Approach

• Conducted 40+ interviews with senior shipping executives around the world.
• Developed underlying drivers of leasing demand (own vs lease) and competitive positioning.
• Independently modeled future market demand for expanded container fleet.

Results

• Confirmed positive market outlook, with detailed input from major customers and objective analysis of business and economic factors, supporting the PE’s winning bid.
• Investment has proven highly profitable.