Performing a Commercial Due Diligence on an Australian Cryogenic Valve Manufacturer

Automotive Management Consulting

Client Challenge

An Indian industrial powerhouse was looking to acquire an Australian cryogenic valve manufacturer as a part of its growth strategy. UC Strategy was brought in to perform a commercial due diligence on the target company and assess the attractiveness of the cryogenic valve market and its growth potential in India.

 

Our Approach

To provide the client with a comprehensive overview of the target company and the sector, UC Strategy adopted the following approach:

  • Conducted market segmentation of the global cryogenic valve market
  • Mapped different valve types with usage in end application segments
  • Landscaped the cryogenic valve market by customer segment – mainly industrial gas producers and cryogenic tank manufacturers
  • Additionally, assessed the impact of the growing demand for cryogenic valves in liquefied natural gas (LNG) carriers and LNG plants
  • Assessed customer segments, buying behavior and key purchase criteria
  • Conducted detailed primary research with key opinion leaders in India as well as in Germany, UK and USA to estimate domestic and global demand
  • Developed insights on drivers and inhibitors for market growth of select valve categories
  • Triangulated primary and secondary research to obtain market size and future growth rates of the cryogenic valve market
  • Analysed competitive intensity and the threat of new entrants
  • Built a valuation model based on discounted cash flow method, comparable multiples and net asset value to arrive at proposed transaction value and walk away price

 

Our Impact

The client received a detailed report on the cryogenic valve manufacturer and its market positioning. UC Strategy also provided an estimated market size of the cryogenic valve market, the expected growth potential and the attractiveness of the sector. This resulted in the client going ahead with the acquisition of the target.

Leave a Reply

Your email address will not be published. Required fields are marked *