Mergers & Acquisitions Support: Case Study

Client Situation

A leading consumer products company was seeking to create a set of profitable new growth platforms outside its core business, and planned to grow through a series of targeted acquisitions. Alliance’s assignment was to assist in a variety of roles from platform evaluation to candidate identification to due diligence to post-merger integration.

Alliance Approach

Over a period of two years, Alliance worked with client management and other key advisors in acquisition program, and helped our client by:

  • Scanning a variety of mass retail distribution channels across a broad range of consumer product categories to rapidly identify and prioritize high profit potential markets for our client
  • Analyzing the future market attractiveness of the high priority categories and identifying potential investment opportunities for our client
  • Outlining creative growth concepts in attractive categories, and exploring how our client could apply its management skills and operating capabilities to build incremental value in acquisition candidates
  • Profiling and evaluating potential acquisition candidates within high priority categories, and identifying the most attractive companies for our client
  • Performing due diligence assessments of potential candidates, including trade channel assessments, competitive analyses, organization and strategy reviews
  • Providing recommendations to our client on key business issues and risks, target valuation ranges, and potential post-acquisition strategy and growth plans.

Results and Impact

Client enjoyed rapid success with acquisition strategy, becoming among top performing companies on NYSE, during which period Alliance:

  • Assisted our client in successfully establishing three growth platforms in new categories in niche home improvement and hardware sectors with key acquisitions
  • Helped identify and perform analysis of companies for follow-on “tuck-in” acquisitions to further build out new platforms
  • Performed due diligence analyses instrumental in identifying business risks leading to two terminated transactions
  • For new platform acquisitions, developed growth plan and helped operationalize major strategic post acquisition initiatives