Our client was a Japanese manufacturer of commercial refrigeration equipment for the retail, cold-chain logistics, etc. The client was looking forward to strengthening its presence in the US market. M&A was identified as the right way to achieve this goal. However, the detailed approach was to be developed in cooperation with a consulting firm. After careful consideration, we have identified a better M&A strategy compared to the originally envisaged one. At first, the client was thinking about the acquisition of a small player to get a “foothold” on the US market. We, on the other hand, recommended a much bigger M&A target to get a commanding position in the mature US market. The client went on with the strategy we offered and later acquired a very significant market player in the US to become one of the top players in the market.
| Project goals | A large Japanese manufacturer wanted a significant position in the US market of commercial cold-chain equipment. Their initial hypothesis was to buy a small American player and grow it to market leader. They wanted to validate this approach and survey a potential M&A target for further actions (pre-M&A due diligence, etc.). |
| Execution (methods) | Review and discussion of the market analysis done previously by the client. Addition of our outlook to the analysis. Interviews and discussions with the client’s stakeholders about possible strategic options for approaching the US market. On-site inspection of the market situation in the USA. Interviews with related industries (cold-chain, retail, wholesale, logistics, etc.) experts in the USA. Competitive intelligence through interviews with experts that knew the situation in target companies. Formulation of the strategic recommendations for the client. Discussion of these recommendations with the client. Final conclusions. |
| Major outcomes | After market analysis, the initial approach was discarded in favor of acquiring a more prominent market player. A potential M&A target has been recommended and accepted by the client. An initial survey of the M&A target was performed. |
| Next steps | The client had been successfully working on the project. |
| Notes | Elements of the Pre-M&A due diligence survey had been employed. |
