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
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
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
