From Downside to Greenlight: 25% Revenue Gap Mitigate
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May 11, 2026
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Seeking to acquire a Canadian technology company specialized in smart home devices, with product and service distribution channels across Canada and the United States, a special purpose acquisition company (“SPAC”) engaged FTI Consulting to provide comprehensive and integrated due diligence services to identify vulnerabilities in the proposed business plan.
Our Impact
- SPAC leadership received a holistic report providing an integrated view of key financial, commercial, operational and tax considerations in relation to this potential transaction.
- As part of our commercial assessment, we conducted a comprehensive review of management’s top line projections, identifying a potential 25% revenue shortfall driven by our analysis of market growth, product volumes, R&D requirements, cross-selling opportunities and other commercial assumptions.
- Our report provided a set of clear recommendations and targeted initiatives designed to materially reduce risk exposure and unlock measurable value creation opportunities, while also framing a pragmatic and actionable implementation plan to guide next steps.
- The comprehensive report allowed the SPAC to optimize its approach to the target company and informed the implementation of numerous mitigation initiatives to improve public readiness.
Our Role
- FTI Consulting deployed a cross-border team of functional experts across the target’s U.S. and Canadian entities to accelerate the identification and quantification of risks and upsides.
- Through an analysis of market dynamics, competitive positioning and the target’s historical spend, sales track record and forecast projections, our experts identified a number of vulnerabilities.
- Our team assessed the target’s “public readiness” in the context of the SPAC, identified significant gaps related to internal controls, SEC reporting and investor relations, and subsequently recommended a number of processes and competencies be built.
- Our experts performed a range of currency analyses that identified material risks related to CAD/USD exchange rates, which allowed the client to effectively implement mitigation strategies related to this specific risk.
Related Insights
Related Information
Published
May 11, 2026
Key Contacts
Senior Managing Director, Co-Leader of Real Estate Solutions
Senior Managing Director