White-glove transportation 3PL due diligence

Challenge

With increasing customer demands for time-sensitive/time-definite transportation and ‘white glove’ specialty handling and delivery services, this PE investor believed the target company operated in a market segment poised for rapid growth. However, there were a number of questions and concerns related to the target’s business model, competitive positioning, and ability to exploit the growth potential in the market.

Approach

• Market and competitive research: Researched logistics trends impacting the target company, interviewed customers and competitors, and evaluated competitive positioning and sustainability.
• SWOT analysis: Benchmarked services and profitability, and assessed management’s growth plan in light of the company’s business model scalability.
• Growth markets and strategies: Developed strategic foundation for sustainable growth, adding focus to management’s plans, and provided guidance for further acquisitions.

Results

• Clear guidance on investor’s questions and concerns.
• Market assessment and competitive positioning.
• Target company SWOT.
• Post-acquisition growth plan.
• Risk assessment: External and company-specific risks to the business.