Assisted an asset management firm in conducting comprehensive due diligence

Assisted in making informed investment decisions
Helped in risk mitigation
Identified competitive advantages

CLIENT CHALLENGES

The client is a leading US-based asset management firm with a focus on sustainable investment. With a commitment to making informed investment decisions, the client approached us for assistance in conducting a comprehensive due diligence report on a company considered for investment. The client required detailed insights into the company’s financial health, management effectiveness, customer satisfaction and competitive positioning.

OUR APPROACH

To address these requirements effectively, we formulated a meticulous approach to primary research while getting insights on:
- Financial health and performance, including revenue growth trends, profitability margins, etc.
- Management effectiveness, including strategic vision and execution capabilities
- Customer satisfaction, including net promoter score (NPS), feedback and retention rates
- Competitive positioning, including market share and competitive advantages
Our methodology included the following:

Initial desk research: We conducted a thorough desk research on the financial reports, investors presentations, annual filings, industry reports, etc. to gather basis information about the company. Based on this information, we identify the customer and other stakeholders to derive the necessary data.

Data collection: Upon completing desk research, we initiated a data collection process to gather detailed information about the company. This involved the following:
- Reviewing the company’s financial data such as financial statements of the past five years and key ratios such as liquidity, profitability and leverage ratios to assess the financial heath and performance over time
- Conducting in-depth interviews with top management and key executives to gain insights into their strategic vision, operational effectiveness, and long- and short-term plans for future growth
- Launching a 15-minute online survey for a sample of 250 customers to gauge their satisfaction levels, identify pain areas, and assess overall sentiment and perception towards the company’s products
- Conducting a competitive analysis to assess the market position, strengths, weaknesses and opportunities for differentiation
Data analysis and reporting: Our team performed a rigorous analysis of the qualitative and quantitative findings, using advanced analytical tools and techniques. This involved the following:
- Conducting trend analysis of financial data to identify patterns and changes in financial performance over time
- Assessing management’s competence, credibility and alignment with the company’s strategic objectives
- Analysing customer survey responses and calculating metrics such as NPS, customer retention rates and customer feedback analysis to identify patterns and overall sentiment towards the company

IMPACT DELIVERED

Our comprehensive due diligence report provided the client with valuable insights to support their investment decision-making process, including:
- Our detailed analysis of the company’s financial position and management, providing a clear understanding of its financial health and growth prospects, which helped the client in making informed investment decisions.
- Identify potential risks, which helped the client to address and mitigate them
- Thorough competitor benchmarking, enabling the client to assess the company’s competitive positioning and identify growth opportunities

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