Outdoor Power Equipment
Ronin Equity Partners is an operationally oriented private equity firm headquartered in New York. Focused on Consumer, Industrial, and Business Services and the Technology and Media sectors, Ronin undertakes equity investments of up to $500M and transactions of up to $1B. The firm leans heavily into investments that prioritize back-office efficiencies without impacting the customer experience.
Ronin engaged Maven to support their due diligence efforts on a prior transaction and decided to continue the partnership on a new opportunity in the outdoor power equipment market.
The scope of the due diligence project homed in on two significant areas. The first was understanding the target’s market position by product line, including the market growth, market share, and competitive intensity. The second was the impact of broader industry trends on the target, specifically the impact of COVID-19, shifts from gas-powered to electric-powered products, and changes to the supply chain and product availability.
Typically, due diligence is conducted toward the end of the deal cycle. However, similar to Maven’s prior due diligence for Ronin, this effort was performed earlier on, giving the firm more time and space to make a beneficial and informed decision.
Maven’s research process leverages information from a dynamic cross-section of sources, ensuring our findings are comprehensive and accurate. We examine published market research, public company data, industry publications, and information collected in the transaction data room. We also conduct interviews with management, the board, and industry experts.
In Ronin’s case, we utilized all these sources; the expert interviews, in particular, provided valuable information and context. We spoke confidentially with corporate merchandise buyers at most of the target’s largest retail customers, and their perspectives paved the way for a more thorough understanding of the competitive landscape by product line.
Using Maven’s due diligence findings, Ronin decided to go ahead with the deal. The transaction closed in 2022.