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Case Study

Investment Appraisal 

Switchgear Market Review

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INVESTOR

Summary
 

Appointed by an International Private Equity Group to conduct a review of European switchgear manufacturers to support an acquisition proposal for a specialist company operating in the Data Centre sector. Canvasing the views of designers, developers and operators to position the target organisation and completing a market review to assess the competitive landscape and adding context to the commercial due diligence exercise.

Brief

 

Our client had identified an opportunity to acquire an Electrical switchgear manufacturer, established in Europe, expanding into APAC and specialising in supplying equipment to the Data Centre sector. Working directly for the investor, VIPA Digital were asked to conduct a detailed market review of the switchgear sector in the context of preferred vendors, existing business model, innovation and development and the potential for market growth.

 

The project consisted a sector review of International switchgear manufacturers, interviews with designers, developers and Data Centre end users, review of prevailing standards and the extent to which innovation and growth of the target company satisfied an investment appraisal.


Delivery

VIPA Digital produced a detailed written report that framed the acquisition target within its peer group, critiqued regional/Global expansion plans, supply chain dependencies, current production profitability, anticipated growth in the Data Centre sector and the potential impact of future profitability.

 

The study considered the Original Equipment Manufacturing (OEM) community, value-added equipment resellers together with local fabricators and assemblers to lend context to the position of the firm in the market.

 

The report also outlined a selection criteria by which procurement professionals would rank supplier proposals (RFP).

Results

The project confirmed the success of the current business model, the likely opportunity for expansion, level of quality and customer preference.

 

The investor was able to complete due diligence, equipped with the context necessary to assemble a case for acquisition, conclude negotiations and submit recommendation to their management team.

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