Market Due Diligence
Understanding a Changing Regulatory Landscape
Our client was interested in pursuing an investment in the lender placed insurance market. Recent regulations had been established, but many industry experts believed that they had not gone far enough. In order to move forward with the transaction, our client needed to understand the regulatory environment (current and future) in addition to the competitive landscape.
- Current regulatory official who could explain newly established regulations and the potential for revisions.
- Senior individual from a large financial institution who can explain how they handle this product internally.
- Former individual from a competitive company who could provide a valued perspective on the competitive dynamics
This search in particular was challenging given recent negative publicity in the media which labeled these products as predatory. We had to develop language which better explained why we were reaching out and the interest of our client. In the end, we were very successful aligning our clients with a number of very relevant individuals who could address all their key concerns.
Splitting the project into three components, we identified, vetted and set up calls with six individuals. One call was set up on the first day of the project! Representative advisors include:
- Former CMO, competitive firm
- Former Senior Vice President of Research and Education at the Mortgage Bankers Association
- Current Director, Center for Insurance Policy & Research, NAIC
- Current EVP, Operations, large institutional insurance provider
Our client decided to walk away from the deal after conversations with the advisors confirmed the unstable regulatory environment.
Staying Flexible When Strategies Shift
Our private equity client held an early-stage investment in a cardiovascular medical device company. They had a promising new product and wanted a new board member to help them navigate the byzantine FDA and CE regulatory processes as quickly as possible. With approval, they hoped to exit through a liquidity event.
Retail Apparel Tagging
The world of fashion has changed. Gone are the days of seasonal clothing lines. Instead, clothing manufactures are continuing to push their designers and their manufacturers to turn out new lines in a matter of weeks. Our client was interested in an apparel tagging company that has the capabilities to keep up with the new speed of fashion. Before moving forward, our client needed to better understand the adoption of fast fashion, the role of customer service and how the larger competitors felt about jumping into this niche space.
Drilling Deep to Find the Right Expertise
A private equity group was evaluating the purchase of an industrial-cleaning company with Fortune 100 customers in the oil, paper, utility, and steel industries. To get comfortable with their investment, our client needed to connect with people who understood: