Sample Case Studies
Detailed case studies available on request
Sell-Side Diligence
Due diligence helps bidders understand value creation opportunities
Industry: ERP solutions serving construction vertical
Abacus Service: Technology and Data Due Diligence
Private Equity seller retained Abacus to develop a Technology diligence report on the belief that its portfolio company which provides ERP solutions to the construction industry globally, offered attractive growth opportunities to bidders who understood the platforms’ flexibility and scalability - but how to provide the right assessment on the technology?
By pursuing a value-driven approach to technology due diligence, Abacus identified opportunities to accelerate value capture and mitigate risks.
Challenge
Bidders need to understand:
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Capabilities and capacity of company's technology organization, platforms, tools and processes
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Opportunities and challenges for ERP platforms to expand to new products and markets globally
Solution
A growth-focused due diligence of Company's multiple platforms and technology stacks helped bidders understand the potential to grow enterprise value.
Result
The assessment thoroughly detailed capabilities and outlined specific areas/actions to bridge maturity gaps and develop additional capabilities.
Buy-Side Diligence
Conviction in rapid value creation
Industry: eCommerce
Abacus Service: Technology Due Diligence
Private equity buyer saw a unique opportunity to combine two eCommerce businesses into an industry leader with scale and operational advantages – but how scaleable was the technology platform? Any issues in migrating revenues? What investment would be needed to enable scaleability? What cybersecurity risks would arise as business scaled up?
Buyer partnered with Abacus on a focused technology due diligence to find out. By pursuing a technology due diligence that considered 10x to 20x increased volumes, Abacus answered the buyer’s key questions and identified additional risks and improvement opportunities.
Challenge
Buyer needed key questions answered quickly:
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Scalability potential and limitations of both Target 1 and Target 2?
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Could Target 1's technology platform scale and incorporate Target 2's functionality and product categories to ensure 100% revenue retention?
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Any major investments required to scale?
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Cyber capabilities and risks?
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Target 2's redundancy and end-of-life issues?
Solution
A focused diligence of both companies core customer and operations platforms and technology stacks helped the buyer understand growth potential based on in-depth assessment of Target 1's scalability and capability to meet Target 2's needs
Result
The diligence concluded that target 1's technology could scale up to 20X without investment and be able to meet Target 2's requirements. This gave the buyer confidence to acquire both companies and execute on value creation plans.