COMMERCIAL DUE DILIGENCE IN TECHNOLOGIEMÄRKTEN

The term "market due diligence" in Germany refers to the structured assessment of a company's market and competitive environment, usually against the background of an upcoming M&A situation in the German market (company acquisition/sale).

While extensive market data is often available for companies operating in consumer goods markets, market due diligence in the industrial sector ( e.g.mechanical engineering, automotive suppliers, medical technology, energy technology) usually requires an adapted approach.

MEYER INDUSTRY RESEARCH has been conducting individual market due diligence projects on the buy and sell side for more than 10 years. We focus on the analysis of technology and niche markets in the business-to-business (B2B) sector.

CURRENT COMMERCIAL DUE DILIGENCE - PROJECT EXAMPLES

For our clients we conduct customized Market Due Diligences, which are individually tailored to the respective requirements. Click on the project examples to get to know some exemplary Market Due Diligence projects of MEYER INDUSTRY RESEARCH.

In the context of a planned takeover of a medium-sized manufacturer of industrial furnaces in the automotive sector, we supported the seller with a systematic sell side market due diligence. We developed a robust analysis of market size, growth prospects, competitive situation and USPs of the company in the market. Based on our market due diligence, the transaction was successfully realized.

The tool grinding machine market is very competitive internationally, the pressure from low-cost machines from China is increasing. For two investment companies interested in the takeover and continuation of a struggling medium-sized manufacturer of tool grinding machines, we investigated the global market situation, international sales markets such as China and Italy, the competitive structure and key customer requirements in a detailed buy-side market due diligence. Interviews with more than 20 tool grinding companies and market experts provided a precise and reliable picture of the market position of the takeover candidate. Based on the results of our analysis, the investors decided to purchase and continue the company, thus securing numerous jobs.

In the market for locking technology for professional applications, the high reliability and security of the products play a central role. At the same time, there is a continuing trend toward electronic solutions. Traditional manufacturers of mechanical locks face the challenge of meeting these new customer requirements, networking their products and offering digital solutions including the necessary hardware and software. As part of a buy side market due diligence, we analyzed the market for special locks and electronic locking technology in Germany and Europe for our client. On the basis of our market due diligence, our client decided to purchase the analyzed company and is currently systematically expanding the market position of the locking technology manufacturer with targeted investments and a new strategic orientation.

As part of a buy-side market due diligence, we investigated the market for voice interaction systems in the automotive sector. Voice interaction systems are increasingly able to "understand" the driver in his natural language and to implement complex voice commands through the use of artificial intelligence (AI) solutions. In addition, voice-based systems can be used to detect fatigue states or moods in the driver and thus increase driving safety.

The market for industrial image processing is currently recording dynamic growth, and Germany is one of the leading nations in terms of the development and use of image processing technologies in industry. Whether in mechanical and plant engineering, in medical technology, in the field of security technology or in traffic and transportation - industrial image processing systems make processes more efficient and safer. In the context of a planned corporate transaction of a leading integrator in Europe, we analyzed the European market for industrial image processing systems for a family office. On the basis of our market due diligence, the family office prevailed in the bidding race and was awarded the contract for the purchase of the attractive medium-sized company.

As part of a customer-specific market due diligence, we identified the leading technology providers (hardware and software) in the sensor fusion market. The fusion of sensor data (sensor fusion) is a crucial factor in the further development of autonomous vehicle concepts. Data from radar, LIDAR, ultrasonic and other sensors must be analyzed in real time, compared against each other and translated into a vehicle response adapted to the situation. The market is considered to be one of the fastest-growing segments in the field of autonomous driving and is therefore currently highly attractive for investors.

As part of a buy-side market due diligence, we investigated the market for autonomous mobile robots (AMRs) worldwide. AMRs automatically transport goods and production materials to warehouses and production halls. Thanks to sensor technology, they can navigate safely even in dynamic environments, avoid obstacles and independently navigate to different destinations.

EXTENSIVE MARKET DUE DILIGENCE EXPERIENCE

Our clear focus on market due diligence projects in industry and B2B offers advantages to our clients: We have access to key information sources, know how to efficiently gather information in your industry and have access to key market experts. For buyers and sellers, we provide customized, up-to-date market and industry information at short notice and analyze potential target companies to the point.

Before founding MEYER INDUSTRY RESEARCH, the founder of our company, Matthias Meyer, worked for a leading strategy and investment consulting firm where he was involved in numerous market due diligence projects.

market_due_diligence_factsheet

Questions and answers about market due diligence

Here we answer some common questions asked by our clients about conducting market due diligence in the industrial sector:

A market due diligence (used analogously to: strategic due diligence) is a special form of strategic market analysis in which the strengths, weaknesses as well as opportunities and threats or future prospects of a company in the market are evaluated in a structured manner (SWOT analysis). In addition to financial due diligence, legal due diligence and HR due diligence, market due diligence is another elementary component in the evaluation of the target company in corporate transactions/M&A projects. To obtain reliable information in market due diligence, one uses both secondary sources (e.g. statistics, publications by companies in the market, competitive analysis, professional articles) and primary market research methods (e.g. interviews with existing customers, potential customers or market experts).

Depending on whether the due diligence is performed for the seller or potential buyer of a company, it is referred to as sell side or buy side market due diligence. Sellers need a market due diligence in order to be able to present a neutral market environment assessment in the sales process. It provides reliable arguments for an attractive valuation of the company and a resulting high sales price. A buy side market due diligence critically examines the market attractiveness and market positioning of the target company and uncovers possible hidden risks of a company purchase. It enables the buyer, who otherwise usually has limited information on the market and the company, to make an appropriate valuation based on neutral information.

To markets in the industrial and B2B environment lie in many cases less directly available market figures and statistics available than in consumer markets. Therefore, the reliable estimation of market size and market growth is a particular challenge in market due diligence projects in industrial and niche markets. We use our extensive accesses to all relevant industrial data sources and supplement them with a distinctive modelingCompetence for the valuation of complex markets. An important role is also played by the Assessments from industry expertswith whom we maintain extensive contacts.

Identifying competitors already active in the market and analyzing the market development strategies of these players is a central task of market due diligence. Which competitors are active in the target market, what is their positioning, what technologies do they work with, how successful are competitors and what best practices can be identified? We aggregate important key figures, analyze competitors' strategies and derive an assessment of the target company's competitive position.

Interviews with market participants and industry experts are an important source of information when evaluating companies and markets. Our proven interview process ensures the maximum success of the interviews: (1) We develop a suitable interview guideline with the central questions in close consultation with you. (2) We search our network and other suitable environments for informative interview partners. For example, we interview decision-makers at customers, non-customers, dealers and sales partners, associations, research institutes or other participants in the value chain. You will receive a list of proposed interview partners for approval. (3) We conduct the interviews in compliance with professional principles. (4) We compile the assessments of the interview partners and derive implications for the company and market evaluation .

Company sales are often time-critical and the set deadlines are tight. Therefore, we support our clients in a market due diligence on short notice and unbureaucratically. The first partial results are often available within a few days, and the total processing time is usually no longer than a few weeks.

Do you have any further questions about conducting a market due diligence? We would be happy to be your contact: Contact

Robotic Market Research Germany

OUR MARKET DUE DILIGENCE SERVICES & BENEFITS

Robotic Market Research Germany

Market due diligence projects for industrial companies and in the business-to-business (B2B) sector require a special methodology:

Especially in technologically characterized niche markets with a manageable number of market participants, conventional, publicly accessible sources usually contain little or at least not very reliable information.

Usable and robust information can often be found in specialized databases and industry-specific sources that require specific knowledge and research expertise.

An indispensable source of information for a reliable, neutral assessment of a company during market due diligence are also experts, customers, business partners and other market participants who, based on their practical experience, can make valuable statements on the market and competitive situation and the position of the relevant company in the market.

EXTENSIVE MARKET DUE DILIGENCE EXPERIENCE

MEYER INDUSTRY RESEARCH conducts market due diligence projects in automotive, machinery and equipment, electronics, energy and other technology-driven industries.

Due to our clear focus on industrial and technology-driven market due diligence projects, we have access to important sources of information. For investment companies or strategic investors, we provide customized, up-to-date market and industry information and analyze potential target companies according to your requirements.

Prior to founding MEYER INDUSTRY RESEARCH, Matthias Meyer worked for an international strategy consulting firm where he was involved in strategic and market due diligence projects.

MARKET DUE DILIGENCE OF UNCOMPROMISING QUALITY - EXTENSIVE REFERENCES

Geschäftsführer, Vertriebsleiter, Strategie- und Business Development-Verantwortliche bei mehr als 100 Kundenunternehmen vertrauen auf unsere akribischen Marktanalysen aus einem zentralen Grund: Der kompromisslosen Qualität und Belastbarkeit der Ergebnisse aus unserer Markt- und Wettbewerbsanalyse. Unsere anspruchsvollen Kunden schätzen zudem die persönliche und offene Zusammenarbeit mit unserem Team und bringen dies in zahlreichen Referenzen zum Ausdruck – bitte verschaffen Sie sich selbst einen Eindruck.

More references

INDIVIDUAL CONSULTING FOR YOUR MARKET ANALYSIS

Trustful personal cooperation and the high quality and resilience of our analyses are top priorities at MEYER INDUSTRY RESEARCH.

 We would be happy to advise you intensively and without obligation in the run-up to a possible cooperation on a market study, if desired also at a personal appointment at your site. We look forward to your inquiry!

Ask us