A private equity firm was considering the acquisition of a content security vendor and required expert advice on the target’s position in the market and growth trajectory.
Our client’s situation
A private equity firm was considering the acquisition of a content security vendor and required expert advice on the target’s position in the market and growth trajectory. Cartesian was engaged to undertake commercial and technical due diligence.
How we approached the issue
Our client wanted to create an investment thesis taking into account the required investment in the target company’s product roadmap. To do this they needed to fully understand the latest market trends and the competitive environment in the content security market.
What we did to help
Cartesian reviewed the vendor’s product portfolio, capabilities and roadmap in the context of the changing content security market. We reviewed vendor IM and benchmarked KPIs including research and development personnel by function and location. To assess the vendor’s commercial prospects we segmented the vendor’s current and potential customer base to identify how the vendor should position to grow market share. Funding needs were then built up by evaluating the product development investment necessary to achieve the target product positioning. Cartesian also identified and evaluated potential post-transaction M&A options for inorganic growth.
The end result
Our final deliverable was a due diligence report providing an overview of the market, the target’s positioning and risks associated with the management forecast. Our report provided the client with key insights into the content security ecosystem and a red flags assessment of critical risks and issues to be raised with management. To support growth we developed a target product roadmap, a forecast of required investment, and a short-list of post-transaction M&A targets.