Private Equity
India’s high growth and scale, developed capital markets and strong financial, regulatory and legal framework are some of the key drivers that make India a preferred destination for PE firms.
The private equity and investment banking community engages UC services on both the "buy" and "sell" side of transactions. Buy side of the transactions involves engagements in pre-deal and post deal stages of the transactions. We support clients across the full transaction lifecycle, helping to close successful deals, enhance the target’s value, and integrate follow-on transactions
Our work with the private equity and investment banking community is summarised below:
To view our case studies please click on the links given below or to download click here
Strategic diligence for a leading private equity firm
The Client was an India focused private equity fund, providing growth financing to small and medium companies. The client had an opportunity to invest in a Mumbai based financial services firm, engaged in the business of retail and institutional brokerage and equities arbitrage.
Client Benefits: An understanding of the evolution of SME banking worldwide by profiling international banks, a positioning strategy, definition of service offerings supported by a distribution strategy
Landscaping the ship-building industry for an international private equity investment company
The client was an international private equity investment company. They had signed a term sheet with a shipyard company for a potential investment. They had already appointed a technical consultant to evaluate their shipyard company’s capabilities and audit their processes, but they engaged UC to do a detailed validation of their business model and its sustainability both in India and Globally.
Client Benefits: Validation of the shipyard’s business plan
Assisting a PE firm in decision to inject funds in an acquired aluminum formwork manufacturer
The client, a private equity investor in emerging market, had acquired an aluminum formwork manufacturing firm. The client had requested assistance to provide insights on the aluminum formwork market in India to develop a market model for near (1/2 – 1 year) and medium-term (2 – 3 years) time period.
Client Benefits: A view of the market in the near-term and medium-term future supported by a comparison with the forecast of the management forecast and commentary on key differences and the rationale behind the same
Assessing the evolution of mobility and transport needs of an emerging economic hub/ location
The client was world’s one of the largest private equity player and was evaluating potential investment target in the material handling equipment (MHE) industry in India. They wanted to conduct a diligence of the MHE market in India, and also understand the market standing of the target company.
Client Benefits: Obtained a realistic assessment of market opportunity of MHE equipment across, power, steel, and ports sector over the next 5 years. Understood the customers purchasing behavior and key criteria and how the target company was stacked against the key competitors on those buying criteria’s.
Strategic diligence of an investment target in a diesel genset OEM in India
The client was a private equity firm who was investing in diesel genset OEM in India and wanted UC, to validate certain assumptions made by the OEM in the 3 year business plan including growth in the end user application industries and its multiplier impact on the revenues of the OEM and the competitiveness of the company on certain performance benchmarks, including cost leadership. The decision whether to invest or not and the valuation there-of was not part of the engagement scope.
Client Benefits: Facilitated the decision making for the private equity firm by providing perspective on the following:
- Break up of Genset market size KVA wise (in value and volume)
- Validation of the sectors growth opportunity over a 3 year horizon
- Possibility of achieving business plan target for each of the revenue streams
Diligence of a pharmaceutical company for investment by the client
The client was a financial organisation based in Kuwait and involved in areas such as banking, real estate, trade finance and investments. They had invested in a Jordanian pharmaceutical company that manufactured IV and hemodialysis solutions and planned to start manufacturing insulin. The client was considering increasing their investment in the pharmaceutical company and wanted an independent view on the growth potential of the company before proceeding with this investment.
Client Benefits: Presented the client with financial projections of the company in question, clearly outlining the companies ability to generate profit over the next 5 years Outlined the initiatives that the company should undertake to maximize its profitability and thus be a worthwhile investment for the client.