Finding a strategic owner

The Issue

An SME operating in the AD&S sector was finding it increasingly difficult to respond to its customers changing demands on contract terms and the industry’s shift towards risk share partnerships. The shareholders decided that the organisation needed to become part of a multinational corporation better able to respond to these requirements.

Our Approach

PwC was appointed by the shareholders to conduct a strategic review of the business including an assessment of:

  • the key value drivers within the business and recommendations with respect to how to position these with potential acquirers during any exit planning
  • how value might differ within each of the business’ three operating segments and whether value could be significantly influenced by the timing of an exit and whether the business should be sold as one, two or three different businesses
  • what range of values might be achieved in a sale process
  • who the potential acquirers were and what benefit each might bring to the business.

The PwC corporate finance team spent time with the management of the business to understand the key investment considerations. From our knowledge and understanding of the industry and its trends, the team developed a vision of how these could be capitalized on by a range of potential acquirers.

Utilising our extensive industry network and contacts, we then tested these assumptions with a range of potential acquirers and produced a short list of strategic buyers who would recognise the opportunity the business represented.

The Outcome

Following the completion of the strategic review, a focused sale process was conducted. This targeted the strategic buyers identified during the first phase of work and articulated the investment case in a way we knew potential buyers would recognise and value. The business was ultimately acquired as one entity by a large, multinational US defence company.