Due to the competitive nature of the PE space, the client has asked to remain anonymous.
The client was looking at a potential acquisition that participated in the commercial construction industry:
- They wanted to determine how tethered the potential acquisition’s revenue was to the health of the end market.
- They sought to independently validate the revenue forecast that they had received from the company.
Given their relationship with ITR, and as they prepared to decide whether to acquire the business, the client noted a potential opportunity to leverage the types of analysis that ITR Economics regularly employs on a custom basis.
"Our point analyst was keen to better understand as much about the business as he could before diving into the analysis, and we appreciated his curiosity and interest in the details. He acted less like a third-party advisor and more like an extension of our own team."
How Product Helped
Serving this type of client for this specific purpose was a new endeavor for ITR Economics.
“They delivered at a high level of service. Our point analyst was keen to better understand as much about the business as he could before diving into the analysis, and we appreciated his curiosity and interest in the details. His report was delivered to us in a matter of weeks, and he paired it with a phone consultation to ensure we understood the key takeaways and to answer open questions. He acted less like a third-party advisor and more like an extension of our own team.”
Results, Return on Investment, and Future Plans
ITR’s forecast for the business lined up well with the management team’s outlook, which provided comfort in the numbers as well as in the management’s thoughtfulness around their forecasting capabilities.
Had the forecasts meaningfully diverged, it would have given the client an independent view to bring back to the target’s management. This would have helped demonstrate to the management team that the client was spending time and effort on getting to know them better.
“[This] likely would have further underscored our authentic interest in partnering with them going forward.”