Empowering Growth and Boosting Valuation Through a Strategic Tech Acquisition
February 05, 2024
FTI Consulting helped a sponsor-owned wire company identify an opportunity to increase its valuation by acquiring a technology company in order to expand into a new digitally enabled business model.
- A five-year market compound annual growth rate (“CAGR”) was modeled based on FTI Consulting’s strategy to more than double valuation multiples.
- FTI Consulting delivered a plan and target organization for a technology acquisition after a thorough analysis of extending the client’s core business model, expansion into multiple adjacent market segments and rigorous diligence on the target’s technology capabilities.
- The client was given an additional summary of future disruptive trends in the industry with risk factors, threats and opportunities based on market analyses and interviews with dozens of industry insiders and experts.
- FTI Consulting conducted market research and expert surveys to identify key platform features and underlying technologies that would support a new business model, ultimately recommending four targets for potential acquisition out of more than 75 competitors in the market.
- The team assessed the total and serviceable market size, growth opportunities and potential risks of the client’s acquisition strategy by combining findings from the market research, interviews and survey results.
- FTI Consulting developed a revenue projection model based on the acquisition’s potential to extend the company’s platform and synergy analysis with existing business.