Cases

Identification of the Acquisition Targets in India for a Leading European Supplier of Air Solutions

Challenge

The client is a leading European ventilation and air treatment solutions provider for buildings as well as fan solutions for industry and infrastructure applications. It has a long-term business objective to become a company with revenues in excess of 1 billion Euros with an organic growth of 5 percent on a year-on-year basis and achieve sales of 650 million Euros by 2010 and had identified India and South East Asia as the growth engine for the company. The client was looking for an ideal acquisition target in the Indian heating, ventilation and air conditioning (HVAC) landscape in order to achieve its objective.

Our Approach

UC assisted the client in finding suitable acquisition targets, following the below processes:

  • Built an exhaustive list of HVAC manufacturers in India using various sources like data from manufacturers association, industry experts etc.
  • Screened companies through various criterion such as product range fit, revenue fit, critical size fit and strategic fit etc. and eliminated companies which did not fit the criterion
  • Short listed companies for detailed analysis and screening
  • Conducted plant visits and face to face interviews with the key decision makers at the short listed companies to assess them on key parameters like critical size, capacity dynamics, quality of products and infrastructure, expansion plans, engineering skills etc. Aspects such as market perception, brand image, quality perception of companies was also assessed through market, user as well as customer interviews.

Impact

The client received recommendations on potential acquisition targets based on stand-alone attractiveness, product range fit, manufacturing capabilities, value chain presence, quality perception, brand image etc. The client was also given a watch list of companies in addition to the ideal list of acquisition targets and a detailed profile of each of the potential acquisition targets in India.