FMCG Manufacturer CDD | Genesis Advisory
Genesis led commercial due diligence on an artisan bakery business for a PE investor, uncovering a materially smaller addressable market than advertised and enabling a disciplined revised bid.
Commercial Due Diligence (CDD) / Deal Execution
CDD and Deal Execution: B2B Payments Software
Genesis supported a PE firm on the buy-side due diligence and deal execution of a transaction in the B2B FinTech Payments space, assessing key deal risks and providing the IC with confidence to proceed.
THE PROBLEM
Validating the investment case and key risks for a market-leading B2B payments integration platform.
OUR APPROACH & SOLUTIONS
Market assessment, customer engagement and financial scenario modelling to inform IC decision
Market & Competitive Landscape Assessment
Customer & Partner Engagement
Financial Modelling & Scenario Analysis
- Assessed the payment terminal software market landscape including market growth forecasts, key competitors and emerging technologies
- Evaluated the potential for integrated terminals to displace standalone products
- Engaged key customers and partners to assess switching costs and customer stickiness
- Evaluated customer concentration risk and attitudes to market alternatives
- Identified and quantified key risks and ‘deal killers’ for the Investment Committee
- Built a financial model to forecast business performance expectations
- Conducted scenario analysis to model the impact of removing key relationships on deal economics
- Enabled the IC to identify ‘what you need to believe’ for the deal to work
Market & Competitive Landscape Assessment
- Assessed the payment terminal software market landscape including market growth forecasts, key competitors and emerging technologies
- Evaluated the potential for integrated terminals to displace standalone products
Deal Structuring & Negotiation
- Engaged key customers and partners to assess switching costs and customer stickiness
- Evaluated customer concentration risk and attitudes to market alternatives
- Identified and quantified key risks and 'deal killers' for the Investment Committee
Full Transaction Execution
- Built a financial model to forecast business performance expectations
- Conducted scenario analysis to model the impact of removing key relationships on deal economics
- Enabled the IC to identify 'what you need to believe' for the deal to work
THE RESULT
The target was acquired as a platform deal for A$50–100m and has grown strongly since acquisition.
Genesis provided the IC with a balanced view of key risks, giving them comfort to proceed with the transaction. The engagement covered market dynamics, customer stickiness, competitive threats and financial scenario modelling. The business was subsequently acquired as a platform deal and has continued to grow strongly under PE ownership.
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