Investment planning and validation

A leading private equity firm approached SBD looking to make their first strategic acquisition in the global telematics market. The firm had identified a profitable and well established stolen vehicle tracking service company, but needed an independent, expert validation of their investment

The challenge

With no experience of today’s crowded and fast-moving automotive industry, the investor needed a clear, fact-based view of the company’s growth potential. They were particularly interested in how demand might change, the potential for expansion, what their competitive position would be and any other threats to the company’s future profitability. Enquire now

The process

Market intelligence

Everything the investor needed to get up-to-speed with what was happening in the global connected car industry. This included access to our research and educational workshops covering major players, the size of the market, supplier/manufacturer relationships, challenges, opportunities and major threats.

Due diligence

We conducted a vigorous due diligence process to support the investor’s financial audit. This helped the investor understand the commercial and technical potential of the target company. Potential problem areas were identified and clear “Go” and “No-Go” recommendations were made.

Post-acquisition support

We provided the investor with on-going support, including continued access to our research and workshops to fill gaps in their knowledge. We also provided B2B marketing assistance, ensuring the company was positioning themselves in a way that would resonate with the automotive industry.

What we found

  • Strong growth potential in the company’s existing business. Vehicle theft was a serious concern in the target market, causing many insurers to make tracking services a mandatory requirement
  • Fleet management was identified as a key diversification opportunity, as large haulage operations recognized the benefits of tracking technologies
  • The ‘pay per drive’ insurance sector was growing, but still relatively new. ​We recommend spreading the risk by focusing primarily on more established markets
  • The company would eventually be forced to become a service provider, as vehicle manufacturers move towards factory fitted tracking systems. ​We recommended that the company anticipate this change by positioning themselves as manufacturers’ supplier of choice.