A large Asset Management company was looking to buy shares in a Chinese restaurant group in the Asia Pacific region from a Fund that held a significant shareholding. Our role was to identity upsides and red flags.
Given our previous experience with similar assets, we were able to analyze the secondary data in the virtual data room (VDR) and come to conclusions relative to recent financial performance and the robustness of the financial model forecasts. We were also able to interview experts in our network to get a view of the existing management as well as brand reputation. Finally, we analyzed social media ratings in three countries to assess the level of consumer acceptance and market attractiveness in relation to competitor brands.
The transaction was concluded and our client was able to include further protections to eliminate most downside risk if the forecasts failed to meet targets.