Lucintel
supports clients in
executing due diligence. Following are some of the project
descriptions related to due diligence.
1.
One of our clients wanted to invest several million dollars
in a Chinese fiberglass company. Before the investment was made,
the client was deeply interested in minimizing as much risk as possible.
Responding to this client’s needs, the Lucintel team helped
the client with a key strategic decision whereby the main objectives
of the project were achieved by conducting the following analysis:
- Historical
and projected supply and demand analysis
- Technical
capabilities of the target firm. Comparison of
technical capabilities of the target with global
leading players
- Price
and profitability analysis. Cost competitiveness of
the target as compared to leading players
- Competitive
analysis. Market shares of major players as compared
to the target
- Risk
assessment of the target as well as overall market.
- SWOT
analysis of the target.
2.
Another client approached Lucintel to help assess the acquisition
potential of a particular company which supplies composite products
to the infrastructure industry. Some of the objectives of the project
were to conduct an analysis that answered the following questions:
- Does
the target firm’s technology in the infrastructure
industry help establish entry barriers and increase
competitiveness?
- Detailed
comparison of target’s technology with competing
technologies
- Market
potential of the target’s technology
- Standard
industry practice in winning new customers and
developing them
- Return
on the capital structure
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