Commercial Due Diligence
The media client wished to consolidate its leading position in the media industry
through an acquisition
Sector: Media
Service: Strategy
Context
A large media company wished to expand its interest in the South African media industry. Prior to
acquiring a target, the EXCO needed an independent view of the market and a high level analysis of the attractiveness of the industry and the target to prepare an investment thesis for its Board.
Approach
A commercial due diligence was undertaken on. Our team undertook a classical commercial due diligence on the industry with a special focus on a large media owner.
We combined desk research with targeted interviews to determine the size and growth prospects of the industry, the regulatory landscape, competitors, the advertising industry and channels to market. We also reviewed global media trends and determined their likely impact on the South African market.
This was enhanced by a desktop deep dive on the target where we also interviewed former employees and subject matter experts to gain deep insights and knowledge of the likely future performance of the business, enabling us to prepare high level financials and inform the valuation of the target.
Impact
The research confirmed the attractiveness of the target in a fast-changing market which armed the client executives to put forward an investment thesis for the Board.