M&A: Technical due diligence for an investment firm
Our client is a leading Asia-focused alternative investment firm that wanted to develop an enterprise technology services platform. Lancia Consult was engaged to provide technical due diligence on a potential target business to be acquired or partnered with, as part of our client’s services platform. Our in-depth assessment and recommendations directly informed the client’s strategic decision-making process.
Service
Sector
Within one month, Lancia Consult delivered a comprehensive technical due diligence report on a target business, enabling a strategic partnership that leveraged the target's capabilities for sustained growth and success.
The Challenge
Our client, a leading Asia-focused alternative investment firm with over US$4 billion in AUM, required a technical due diligence assessment of a target business to potentially be acquired as a core part of their enterprise technology services platform.
The key areas of focus for the evaluation included:
- Quality
- Efficiency & Productivity
- Capabilities
- Competitive Benchmarking
Within a compressed timeline of less than one month, we assessed both material and non-material risks, value opportunities, and recommendations, against the aim of significantly leveraging, scaling, and growing the target’s business.
The Solution
We applied our due diligence framework, which is structured to deliver a thorough and unbiased evaluation of the target company’s operational strengths and any potential material risks or gaps. This methodical approach incorporates multiple stages to ensure that the assessment is both detailed and pertinent to the specific context of the target business. By aligning the evaluation with the strategic objectives of the acquiring organisation, we ensured that the findings were not only accurate, but also directly relevant to the client’s goals.
The three key phases of the approach are:
- Quantitative & Qualitative Data Capture
- Analysis & Evaluation
- Derivation of Key Findings and Formulation of Strategic Recommendations
We produced a deep analysis of the target’s end-to-end offerings to inform the client about any gaps and opportunities within the target business, and to recommend suitable actions and best practices to address these.
The Impact
Our due diligence directly enabled our client to successfully execute a partnership with the target business, leveraging the target’s capabilities to expand their service technology services platform.
Our final report, which we presented to our client’s senior leaders, encompassed a comprehensive set of scores, actionable insights, and targeted recommendations. This assessment equipped our client with a clear understanding of the target business's operational strengths and areas that require attention. These findings provided the clarity needed for our client to confidently make an informed decision, balancing the need to manage potential risks with the opportunity to position the organisation for sustained growth and future success.
