The Business Research Company Identify Investments

The Business Research Company

Identify Investments

2


Case Study- Short List of Potential Acquisitions for an Energy-Sector Software Services Provider

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A provider of software to the energy industry wanted to investigate potential targets to expand its business in the US.

It wanted first to identify a shortlist of potential targets. Criteria included: Headcount 25+ Revenues $5m plus Proven record of delivering high quality software solutions

and support to the oil and gas sector in the US. Strong network with the CIO level in North American oil and

gas firms.

RequirementRequirement

TBRC suggested the following approach

Use of financial and corporate databases to identify companies matching the basic criteria- industry, headcount and revenues- this identified over 200 companies.

Website and secondary source research in order to develop a more specific shortlist based on the exact nature of business and services offered – list reduced to c30 companies

Companies meeting this criteria were then researched in greater detail, including some primary research to establish whether they met the criteria in terms of product quality and network.

MethodologyMethodology Benefits and FeedbackBenefits and Feedback

TBRC delivered the following.

• Details of the initial short list of companies with accompanying metadata.

• Company profiles of 4 companies meeting the client criteria with the following details.

Overview Key facts Basic financials Services and capabilities Clients and client feedback

SolutionSolution

The client was satisfied with the list of potential targets and utilized the information in its investment decision process.

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Case Study- Asset Assessment in the Indian Power Sector


A power company was considering some strategic investments in natural gas power stations in India.

It wanted to get an understanding of the strategies of some of the leading competitors in the power market and whether they might be looking to divest assets.

It also wanted top level financial assessments of these natural gas power stations as a first step in potentially valuing and bidding for specific assets or companies.


MethodologyMethodology Client Benefits and FeedbackClient Benefits and Feedback

TBRC delivered the following to meet the client’s needs.

• A series of interactive asset valuation models in Excel format with detailed:

• Capacity• Utilization • Output cost • Price• Tax

• A series of competitor profiles focusing on forward-looking strategy.

SolutionSolution

• The asset assessment supported the client’s belief in the attractiveness of certain natural power stations as investment targets. • The research showed that some of the companies

owning the identified assets were looking to increase their exposure to non conventional power and were therefore potentially open to divestment of conventional power plants.

TBRC suggested the following approach

Research into leading power companies in India, including interviews with leading executives to get insights into strategy.

Models were created for some major assets, based on a combination of secondary and primary research inputs with industry benchmarks used to model and forecast data.

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The Business Research CompanyCase Study- Due Diligence on a Chinese Partner


A commodities company wanted to know more information on a potential partner company in China. It wanted to know:

Overview of the Chinese commodities trading market and trading practices.

What was the financial and trading history of the Chinese company?

Did the company have the connections and existing contracts it claimed?

Were there any regulatory or reputational issues facing the company?


• We conducted thorough investigation through:

Face-to-face research (conducted by Chinese agent): 10 Interviews with the Chinese company’s employees, ex employees, customers and competitors.

Investigation of regulatory filings of the company (by a Chinese Agent) and the history of the leading sponsors and executives.

Checking of social media and newspaper comment on the company.

Our Analysts (industry experts) used the information gathered from the above sources, analyzed the data and offered a two-format solution to the client.


The research and findings were delivered to the client as a:

China Market profile of the Commodities Trading market

Company profile including: Company overview Financials Key personnel Company reputation Regulatory issues

SolutionSolution

• Based on the study the client was able to establish the following about the Chinese company.

• It did indeed have the contacts and connections it claimed.

• The company had long and steady history of profitable trading.

• While there had been some complaints against the company there were no law suits.

• On the basis of this the commodities trader was able to confidently go into partnership.


Case Study- Financial and Operational Due Diligence on an Analytics Services Company

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The Private Equity (PE) arm of a global bank was looking for an investment in the expanding data analytics and text mining services sector. The company had identified 2 potential investment targets. Both companies had provided an information pack giving details on financials, operations, strategy and plans. One of the companies was being promoted for sale by a bank, the other had been identified by the client.The client wished to cross verify the information given in the packs, and make an independent assessment of the companies and their potential value.


TBRC adopted the following approach.

Financial due diligence Line-by-line analysis of financials and definitions. Independent forecast of major P&L lines. Comparative ratio analysis against industry norms and

recent deals for pricing guidance. Comparison of different business units and geographies.

Operational due diligence Interviews with the target company, its clients, and

competitors. Desk research on trends and growth in the data analytics

market.


TBRC delivered the following:Financial Annotated financials with feedback on any points to note. Independent profit and loss forecast. Ratio analysis and price benchmarking. Business unit and geographic contribution break down. Cost Analysis. Operational Verification notes on the documented operational

information. SWOT analysis of company’s operations. Gap analysis of its competencies and services.

SolutionSolution

The research inputs helped the PE firm to finalize its investment target and price its offer.

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The Business Research CompanyDisclaimer

All Rights Reserved.These presentations and reports should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of TBRC Business Research. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may not repackage or sell the presentation. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that TBRC Business Research delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such TBRC Business Research can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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The Business Research Company Identify Investments