Share
Stax Supported a Top Global Investor Client and its Portfolio Company, a Leader in IT Security, in Due Diligence on an Add-on Acquisition Target.
THE SITUATION
- A leading global private equity investor approached Stax on behalf of its portfolio company, a leader in IT security, to support due diligence for an add-on to the portfolio company. The target is an emerging player in a network security category in which the portfolio company already has an offering sold outside the target’s core geographies.
THE ASSIGNMENT
- Our work tested critical deal rationale hypotheses related to the target, including expectations of growth and customer retention, channel perception of the target and its competitive set, potential for negative revenue synergies from brand conflict, and customer value of the target’s technology portfolio. Stax also sought to understand how well-received the target was outside its home market, which represented a sizable share of its business.
- The fact base for our work comprised about 240 phone- and web-based interviews across 6 markets in North America, Asia, Europe, and the Middle East.
THE BENEFITS
- The client and its portfolio company received a clear, data-driven perspective on both its critical deal rationale hypotheses, and issues the portfolio company would likely need to consider post-acquisition.
THE FINDING
- Stax found that customers planned to grow their installations in the near term, that they highly valued the target’s engineering prowess and strong customer support, and that customer satisfaction was high overall. We also found strong opportunity outside the target’s home geography.
- While we found a favorable outlook overall,
Stax identified some risk of conflict with channel partners, and some potential risk for negative revenue synergies in some of the target’s markets.
Read More
Stax is pleased to welcome Andrew Keller to the London office as a Director. Andrew will oversee the technology market coverage for U.K. and EMEA. Click to learn more.
Marissa Licursi, Senior Manager at Stax, has recently been honored by Consulting Magazine as one of 2024's Rising Stars of the Profession for her Excellence in Client Service. Read more.
In this three part series, Stax experts Athan Siah and Harry Stuart dive into customer closeness and how investors can develop insight into participant objectives when assessing B2B event organizers. Read more.
A diversifying U.S. population and consumer preferences have spurred the growth of international foods in the U.S. market. Stax Associate Director Shoaa Ansari highlights changing trends and demand in the market. Learn more.
Stax experts Marc Malott and Athul Ravunniarath share Stax's experience in evaluating clients AI integration efforts, as well as several key areas SaaS companies can benefit from AI. Learn more.
The increasing number of EVs, alongside tech advancements and government programs, has led to a surge in popularity for EVs with drivers (and investors). Click to learn more.