Case Studies

A Private Equity Company Venturing Into Tech Investing

A private equity client was considering an investment in a fast-growing custom AI service provider in China, and they needed a third-party perspective on the prospects of this transaction. Seeking returns was hired by the private equity company to perform a comprehensive internal and external analysis to determine the target’s competitive positioning, overall size and growth of the market, and the target’s future prospects, ultimately deciding whether or not to pursue the transaction.

 

To meet the client’s objective, Seeking Returns performed both primary and secondary research to estimate the market size and market growth rate of the AI industry. We compared market growth estimates, competitor share positions, customer future spending trends and vendor preferences to validate target company revenue forecasts and understand implied market share changes. We educated the private equity client on industry technologies and answered one-off queries when they occurred during the due diligence process using our firmware expertise. As a result, we became a trusted advisor and operated as a partner throughout the due diligence process. The private equity client was able to make the choice to invest in the target with the support of Seeking Returns.

Global Strategy Planning with A Competitive Sourcing Base

Our client was a European automobile company looking to export product segments, including components and kits from China. Seeking Returns helped the client to understand the potential impact of this decision, and source for reliable suppliers. Seeking Returns worked with the client to determine the decisions to be made and how to make those decisions based upon the nature and drivers of their business.

 

Our consultants conducted discussion-based interviews focused on key players and specialist research institutes within the industry, and the findings were communicated to the client with ongoing feedback. With a deepened understanding, Chinese suppliers were an attractive source of strategic component that would improve the client’s cost competitiveness in the long run, and Seeking Returns formulated the business strategy by shortlisting promising supplier partners, evaluating their long-term partnership potential, and testing their interest in certain forms of cooperation. With Seeking Returns, the client was able to make an informed decision with greater confidence in choosing the right supplier partners.