Concrete Due Diligence
Insight Equity (Insight), a private equity firm in Dallas, contracted Maven to evaluate the market for a commercial construction product as part of their due diligence.
Maven spent two weeks gathering data about the core market, the competition and a new growth opportunity for the business.
The process Maven used when working with Insight was similar to how Maven works with each client. In a due diligence assignment Maven focuses on interviewing potential customers to get unbiased views of the product; determining the size of and changes in the market; and understanding a company’s major competitors and how a given company fits in the larger landscape.
As is always the case, Maven went directly to the source of potential customers to get an unbiased view of a potential new product—or the new use of an established product. By going directly to the potential customer, Maven is able to obtain information free of preconceptions or agenda. And by analyzing that data without filters or predisposition, Maven can help a client determine the true obstacles or advantages of a new product or a new use of an existing product.
The question Insight tasked Maven with answering perfectly highlights one of the main reasons companies rely on third-party consultants: with research, unbiased interviews, and statistical data, Maven is able to drill down past intuition and anecdotal reasoning to determine whether or not a company’s growth projections are realistic.
Due diligence for confidence to move forward
Satori Capital is a Dallas, Texas private equity firm founded by entrepreneurs who understand the challenges faced by business leaders ready to grow, but unsure how to get there. Their mission and life’s work: to invest in aligned private companies and help them grow.
Satori has partnered with talented management teams to accelerate the growth of companies that are “built to last,” including 24 Hour Fitness, SunTree Snack Foods, Longhorn Health Solutions, and Ranger Wireless Solutions.
Satori turned to Maven to perform due diligence on a machinery moving and rigging company they had targeted for acquisition. They chose Maven knowing they could provide the quality, creativity and rigorous thinking of a top-tier consulting firm at a price point that works for a lower mid-market deal.
Over the three-week project, Maven’s due diligence included the competitive landscape, market size, growth potential for the market (and areas where it was not growing), market positioning, extensive voice of the customer (VoC) research and a detailed analysis of the possible impact of a recession on this market and company. Crucially, Maven was also able to identify future growth opportunities.
Maven’s due diligence and findings gave Satori the confidence to move forward with the acquisition.