Conducting a Strategic Diligence of the Hydraulics Cylinder Market for a Private Equity Company

strategic due diligence

Client Challenge

The client, a large private equity firm had acquired an aluminum form work manufacturing firm. It requested UC Strategy to assist in providing insights on the aluminum form work market in India and other key markets to develop a market model for near (1/2 – 1 year) and medium-term (2–3 years) period.

Our Approach

To conduct a strategic diligence of the hydraulics cylinder market for the client, UC Strategy adopted the following approach:

  • Assessed the demand for tipper trucks from various industries such as mining, infrastructure, construction and waste management
  • Conducted interviews with key opinion leaders across different end user industries, commercial vehicle OEMs, bodybuilders and competition
  • Forecast the potential market for tipper trucks based on market feedback
  • Triangulated findings by conducting regression analysis using the growth in construction equipment as proxy to forecast the potential market for tipper trucks

 

Our Impact

The client received an in-depth understanding of the underlying markets that drive the growth of tipper trucks and the potential market for tipper trucks over the next 5 years. A market feedback on the company and the potential threats faced in the market was also clearly addressed by UC Strategy. Ultimately, supported by the insights from the engagement, the PE client bought the target company for 525 million euros.

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