Engineering company

Our client, a leading German mechanical engineering company, was planning to acquire a specialized company in the high-tech sector. The company already had a long-standing partnership with the manufacturer of robotic solutions for pharmaceutical production. As this was the first acquisition process in the company's history for our client, the focus was on ensuring a transparent and structured due diligence process and on empowering the team. The planned acquisition also meant vertical diversification in a market in which the client previously had only limited knowledge. At the same time, the challenging financial and earnings situation of the target company had to be taken into account in addition to strategic issues with regard to the volatile market environment in special machine construction. This required special attention, particularly for the development of the integration plan.

Horváth supported the client within the commercial due diligence process with a project approach specifically tailored to the client's needs. An important component was the procedure in "sprints" with regular decision points. This allowed the decision-making process to be managed step by step and minimized the risk for the client. In addition to analyzing website, association, market, competition, and company data, experienced industry experts were also consulted via Horváth's own interim solution "InterimX."In addition, a separate, combined business plan was drawn up, which included a market expansion strategy. Several synergy potentials could be identified at sales level, in particular through market expansion and cross-selling opportunities, which could enable sales to double within five years. In addition, potential savings in material costs through outsourcing opportunities were identified during the planning period. Through close involvement and regular coordination with central corporate functions on the client side, such as controlling, purchasing, and product development, the growth drivers in the business plan were checked for plausibility and a realistic picture of the technological synergy potential was created. The company valuation was also validated. The structured analyses and the CDD results documentation support the client in making committee decisions. 

The project provided an objective and critical assessment of the business model, the market, the clients, and the competitive environment as well as technological competitiveness. The documentation of the results also served as a basis for decision-making by the Management Board and the Advisory Board. This close involvement has sustainably strengthened the skills and expertise of the team on the client side with regard to M&A processes. The tight project schedule was successfully implemented thanks to the project team's high degree of flexibility, meaning that the deadlines for the committee decision were met. In addition to the CDD results documentation, the client received a combined business plan, which will now be used in the further course of the project.