Client Situation:
A global automotive OEM supplier of passenger comfort products was interested in the potential acquisition of an automotive supplier with proprietary seat technologies and fluid systems. The client was primarily interested in the addition of the Target company’s proprietary seat technologies to their own portfolio; however, this acquisition would also include automotive fluid supply system technologies.
Having little experience in automotive fluid supply systems, the automotive OEM supplier engaged Ducker to assist in pre-transactional due diligence in North American, European, and Asian markets focused on fluid and vapor management components.
This client is recognized as a Tier 1 and/or Tier 2 supplier to global auto makers and seat suppliers
Issue/Opportunity/Challenge:
The client was presented with the opportunity of a private deal, which would allow them further access to technologies and customer reach within the seat comfort area, (extending beyond their currently capabilities of thermal comfort) and an entry into new technology that provides access to a non-adjacent set of products.
Ducker Solution:
Ducker supplied commercial diligence services to provide the client with an independent assessment of the client’s core market opportunity, competitive landscape, growth opportunities and customer feedback analysis on a global scale in a short time frame. Ducker proposed a multi-faceted solution involving:
An overview and assessment of the valve systems and technology that the acquisition target is supply, including market shifts and substitution trend.
An evaluation of market opportunity and attractiveness accompanied by market size, segmentation, and growth forecasts supported by Ducker’s proprietary market data and historic market presence, as well as deep automotive expertise.
A deep dive into the market’s competitive environment, market share and positioning of the acquisition target, as well as a customer analysis; this was accomplished through in-depth interviews with key stakeholders at major market participants..
Benefits:
Because the client had limited knowledge of automotive fluid system technologies, Ducker needed to quickly acclimate the client to the product category, competitive landscape, distribution strategy, and market evolution considering anticipated regulatory changes. Ducker received accolades from both the client and their financial sponsor for the level of detail and depth of analysis provided during progress updates and in final deliverables.
Ducker’s deliverables included market and technology primers, market opportunity and sizing, growth forecasts, customer sourcing strategies, and extensive competitor profiling.
Client Outcomes:
Through Ducker’s engagement the client received a detailed analysis of markets new to the client, a demonstration of market stability due to high barriers to entry and the regulatory nature of the market, and a roadmap of adjacent opportunities, ultimately providing the client with confidence and certainty to enter the market, complete the transaction and pursue an expanded strategy in the sector.
Full Case Study Here
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