Emerging markets logistics service provider due diligence

Challenge

A global private equity firm with a focus on emerging economy investments was concerned about the competitive sustainability of an acquisition target’s business model in light of global logistics trends, evolving customer needs, industry best practices, and the market entry of strong multinational competitors. The client retained New Harbor Consultants to perform a comprehensive commercial and technical due diligence of this large and complex family-owned warehousing and transportation services company.

Approach

• Market and competitive analysis: Researched ambient- and cold-chain customer distribution needs and local, regional and global competitive offerings
• Technical assessment: Benchmarked warehouses, transport operations, maintenance facilities, operation centers, asset management, IT systems, commercial operations, and management/organizational capabilities
• Growth strategies: Developed growth strategies for the overall business and for each operating division, including selective post-investment spin-offs 
• Financial analysis: Provided attainable revenue growth and EBITDA goals for each of the acquisition target’s operating divisions and risk assessments

Results

• Clear guidance to the PE’s investment committee regarding the deal’s merits and risks
• Strategic roadmap for profitable growth post-investment closing
• Target company was successfully acquired, in line with our recommendations