“…Even though the management team have worked in the industry for 30 years, they
welcomed the fresh insights given by Apex.” – Paul Morris, Livingbridge
You wish to conduct the right commercial due diligence, both to increase the probability of completing a successful deal and to identify specific opportunities to increase value in the target business.
You may need to understand how quickly the target’s market is growing, how differentiated it is from its competitors, or how likely key customers are to renew contracts. And you may also wish to understand risks – such as market disruption from new technology or otherwise, competitor actions or customer-specific changes likely to affect demand.
“Apex Insight’s commercial due diligence work produced new information which gave independent
confirmation of the market opportunity.” – Vikram Krishna, GMT Communications Partners
To help you, you need a team who have the right experience, both of how transaction processes work and of the sector and, if possible, the specific asset that you are considering investing in.
“Apex Insight’s … experience from having been part of an MBO team, as well as having
advised on many similar situations, was invaluable” – Trevor Stokes, Sovereign Capital
“The commercial due diligence work provided by Apex Insight provided key
insights that helped us close the deal” – Steve Gandy, CEO, MeetingZone
Our approach to commercial due diligence has been honed in the course of more than 150 transactions we have worked on over the last 25 years. From our strategy consulting background we have learned how to identify and evaluate the key value drivers in a transaction and to deploy best-practice research methods. From our experience in the transactions team of a Big 4 (EY) we have gained a fuller understanding of the transaction process and honed our ability to quantify and integrate our commercial due diligence findings with those of other advisors.
“Apex Insight’s commercial due diligence was valuable … providing fresh insight into the views,
needs and intentions of our top customers and partners.” – Alex Hawes, CEO, Amsys
While we work on large deals (such as the Banijay / Zodiak and Carphone Warehouse / Dixons Retail mergers) our main focus is on mid-market transactions. Our clients call on us to deliver a top-end service which meets the constraints of a mid-market deal.
“Apex Insight’s work provided a detailed account of how the European and US TV production markets have performed, an explanation of the factors which have driven the trends, and forecasts of how the market is expected to develop in future” – Philippe Magnani, LOV Group
“Apex Insight’s work confirmed our belief that Locomote offers a sophisticated system which fits well with the Travelport platform and also identified some further opportunities for the business.” – Sandra McLeod, CEO, Locomote
We’re always happy to share our views on a particular sector or asset, and what we see as the critical deal issues, on a confidential basis. When you want to discuss a potential deal, to brainstorm the key issues and to develop the right scope, give us a call.
What completed deals has Apex Insight worked on recently?
– The €16m Series B investment round led by Digital Plus Partners in Seven Senders, the leading German cross-border B2C parcels service provider
– A proposed investment by a private equity firm in a UK parcels, logistics, mail and fulfilment group (which did not complete)
– The acquisition of P2P Mailing by The Delivery Group, the buy-and-build platform backed by Next Wave Parters
– Sovereign Capital’s investment to back the management buy-out of Dalepak (now Cygnia), a leading UK logistics and e-fulfilment service provider
– Banijay Group’s merger with Zodiak Media to create a leading global TV production group
– Travelport’s acquisition of Locomote to augment its travel commerce platform
– Dixons Carphone Connected World Services Division’s joint venture with Sprint to re-enter the US mobile phone market
– Refinancing of Multicom following the Safetel merger which created the leading Nordic alarm monitoring service provider, Adsecure
– Carphone Warehouse / Dixons merger to create the leading UK electronics retail group
– Acquisition of MindIT by Seagull and GMT Communications Partners to extend Seagull’s e-learning capabilities into the offshore oil & gas segment
– Livingbridge’s investment in Carousel Logistics, a leading 4PL serving demanding customers in segments from high-tech to high fashion
– Acquisition of Atia by MeetingZone & GMT Communications Partners to add Microsoft Lync capability to MeetingZone’s messaging platform
– Management buy-out of leading Apple IT services provider, Amsys, backed by The Co-Operative Bank
What is Apex Insight’s approach to operational due diligence?
The transaction you are looking at may have operational issues which merit attention during the due diligence process.
We frequently address questions of this nature within our work. To do this we draw on both our own experience and that of the right person from our network of operational partners. They bring many years of experience in working in the specific industry in question, whether it be logistics, contract catering, retail, pharmaceuticals or another area.
Clients tell us that being able to combine this operational due diligence work within the commercial workstream not only gives them a better result but also makes the process less costly and easier to manage by allowing them to reduce the number of advisors involved.
How does Apex Insight work with financial due diligence teams?
Our experience in doing commercial due diligence inside the transactions team of a Big 4 has given us far greater insight into how financial due diligence works than we were ever able to obtain from the perspective of a strategy consulting firm. Our normal style is to work closely and interactively with the financial team, sharing appropriate insights, providing timely input to sensitivity calculations and avoiding duplication of work.
It has also taught us much about the benefits, challenges and limitations of integrated financial / commercial due diligence offerings. Where appropriate, we are able to provide a joined-up service for the mid-market via our partnership with a team of former EY colleagues.