Identifying Potential Investee Companies in the Indian Security Broking Market for a Global Multi-Lateral Agency

strategic due diligence

Client Challenge

The client wanted to invest in sound companies operating in the securities market in India. Top management requested UC Strategy to examine the possible ownership of such companies and was willing to make a significant investment in the same.

Our Approach

To identify potential targets for investment, UC Strategy adopted the following approach:

  • Provided a comprehensive review of the existing investment banking and brokerage industry in India including equity trading, retail distribution of financial savings products
  • Identified key trends in the industry and developed perspective on the emerging winners in the industry
  • Defined criteria at two levels to shortlist the attractive companies. The criteria included the following:
    • Turnover
    • Share of retail vs. institutional business
    • Revenue mix from broking and other financial services like distribution of financial products
    • Reach in terms of offices and franchisee operations
    • Research capabilities
    • Corporate governance record
  • Profiled top 15 shortlisted companies and ranked them in order of attractiveness as potential targets

Our Impact

The client was provided with a detailed industrial landscape of the Indian security broking market and selected a few shortlisted companies as investment targets. UC Strategy’s recommendations were accepted and the client proceeded with implementation.

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