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Case Studies

Due Diligence in Architectural Coatings

A leader in automotive, residential, commercial and industrial coatings with a long-term presence in China.

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Issue

The client was struggling to achieve scale in one of its globally strategic coating market segments. The client’s top management had been in discussions with a leading Chinese coatings supplier for a potential acquisition, but critical questions remained on the viability and sustainability of the target’s business model and selected concerns on compliance.


Approach

We developed a comprehensive SWOT analysis and conducted series of anonymous probing interviews with a target of distributors and users to further understand the acquisition target’s business model and practices as well as the image in the market.


Solution

Solidiance provided a due diligence scope of work which would address the key concerns as well as identify areas of potential synergy with the target’s business and the client’s in China. Our team also evaluated the factors which supported and constrained the target’s historically aggressive growth vector.


Engagement ROI

The client has a comprehensive evaluation on its acquisition target’s profitability and potential revenue attrition due to compliance issues. Resolution was still pending.