Commercial Due Diligence

Our client is a US-based technology company using artificial intelligence (“AI”) to provide logistics planning and execution services for the Automotive Retail, Fleet & Rental, and OEM & Auto Auction industries. As our client explored the possibility of selling its business, Nepanoa was engaged to perform a global commercial due diligence to assess the company’s global market size and competitiveness.

Client Challenges

  • Undefined company’s operational and competitive advantages outside of the United States.

  • Unidentified Total Addressable Market (“TAM”) across North America, South America, Europe, Asia, Africa, and Oceania

  • Ignorance of the global regulatory landscape and potential risk factors

  • Limited knowledge of the state of current client and supplier relationships

  • Lack of understanding of client segmentation and concentration

  • Short timeframe to reach out to potential buyers and complete commercial due diligence

How Nepanoa Added Value

The Nepanoa team was able to complete a global commercial due diligence in 6 weeks, providing our client and potential buyers with key insights of their market and organization. 

Commercial Review

  • Identified current and future revenue streams

 

  • Outlined operational and competitive advantages

 

  • Analyzed the company’s historic performance drivers

Global Market Analysis

  • Estimated the TAM for the company across 24 countries

 

  • Identified and analyzed competitors in each country

 

  • Identified market trends for all potential markets

Client Portfolio Evaluation

Financial Position and Growth

  • Performed client segmentation and concentration analysis

 

  • Carried out a client relationship assessment to gauge the level of trust and areas of opportunity

 

  • Performed an employee satisfaction study

  • Analyzed the current state of the company’s financial position

 

  • Developed financial models based on the company’s structure and objectives

 

  • Identified risks and threats for the business

Results

 

Our client has been acquired by an international company in the automotive industry for more than $100M USD.  Nepanoa’s commercial due diligence supported our client’s valuation, facilitated decision making, and expedited negotiations and approvals.

 

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