From Downside to Greenlight: 25% Revenue Gap Mitigate
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mai 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
Date
mai 11, 2026
Contacts
Senior Managing Director, Co-Leader of Real Estate Solutions
Senior Managing Director