Case Studies

Mergers Acquisitions Platform Roll Up

Private Equity client rolls up HVAC mechanical engineering services platform on a regional basis


The problem

Through a series of acquisitions, nxtMOVE’s private equity client wished to establish a comprehensive network of industrial / commercial HVAC maintenance and repair services in the US

  • Southeast – Mid-Atlantic

  • Midwest

  • Pacific Northwest

Systematic and repeatable customer due diligence was required to:

  • Identify red flags that could impact the value of the client’s investment

  • Determine the stability of customer bases and verify the revenue streams to be acquired

  • Assess trends in outsourcing

  • Measure acquisition candidate performance vs. the competition

  • Explore potential post-acquisition synergies with client’s platform

Over a 5 + year span, nxtMOVE conducted separate customer due diligence engagements on more than 10 regional acquisition candidates

The approach

nxtMOVE structured a series of repeatable, quick turn around engagements consisting of in-depth prime source interviews with:

  • Current customers

  • Former customers

  • Prospective customers

Our analyses (quantitative and qualitative results) were utilized by the acquirer:

  • For negotiation leverage

  • In acquire / do not acquire decisions

  • To address vulnerabilities and capitalize on new opportunities

  • In post-acquisition integration and platform strategy

Mergers Acquisitions Platfrom Roll Up Figure 1
Mergers Acquisitions Platfrom Roll Up Figure 2

The results

  • At the Letter of Intent stage nxtMOVE conducted customer due diligence on every sizeable transaction

  • Our customer due diligence was a routine, but critical part of client platform development and the acquisition process

  • Due diligence results were usually delivered within 3 weeks

  • Presentations to client and acquisition candidate management also helped formulate long-term strategy and facilitate post-acquisition platform integration

Mergers Acquisitions Platfrom Roll Up Figure 3
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