Providing clarity through due diligence

Sunny River Management (SRM) is a private investment firm headquartered in Atlanta, GA. They focus on building best-in-class, middle-market companies poised for long-term success with revenue between $3 – $100 million.  It has successfully acquired 27 businesses in the US and Canada.

Most recently, SRM was considering an investment in a platform company with several bolt-on companies already identified. The target companies manufacture equipment for water and wastewater treatment.  The equipment is used in municipal water systems, industrial manufacturing, food production, and beverage manufacturers.  Companies that consume large amounts of water are working hard to meet their corporate sustainability goals by getting as close as possible to zero discharge.  This equipment makes that vision possible.

The investment involved two other investor groups. One of the co-investors in the deal, Satori Capital, had previously worked with Maven on due diligence projects and recommended them for this deal.

For all due diligence, Maven applies a proven framework to ensure all important facets of the investment are reviewed including total market potential, the competitive landscape, voice of customer, and any regulatory or industry-specific areas. What made the due diligence for SRM unique was the primary focus on the possible revenue synergies across the platform and identified bolt-ons.  Expert and customer interviews were important to understand the value that the combined target and bolt-on companies offered. Maven conducted secondary research on the market and completed 30 expert and customer interviews. The research and interviews were synthesized to develop a point of view on how to maximize the best revenue synergies.

Through Maven’s work, SRM, Satori, and the third investor had the confidence and insights needed to not only move forward but to understand the businesses’ strategic direction. Soon after the due diligence project was completed, the transaction closed.  Three additional bolt-on acquisitions were completed within the next month.