Coatings World - December 2012

Candidate Attractiveness Example

Candidate = XYZ Candidate Position to Target

Strategic/Marketing Fit

$MM Sales

3.0

3

4

5

$33MM

1

2

3

4

5

4

3

2

1

5

4

3

4. 5

12% OPBT

4.0

Defensible TechnicalPosition
Profitability

market analysis, and review identified opportunities, should then yield a prioritization and selection of 8-10 market segment targets for further assessment in Phase 2.

Phase 2:
Opportunity Targeting

Phase 2 focuses on deeper analysis of target market segments for value creation and extraction opportunities, identification of possible acquisition candidates, and development of possible ‘business build’ scenarios.

For each of the target market segments, develop a comprehensive Value Chain “Cluster” designed to uncover and show where industry structure, value chain inefficiencies, supply/demand balance or other structural issues may present attractive opportunities for strategic value creation or extraction, the Channel captain (or, captains) for each segment be identified. This Value Chain exercise will highlight the attractive niche/segments, allowing for a more focused determination of potential acquisition candidates.

Using the criteria developed in Phase 1, and the identified value opportunities identified above, develop and assess initial ‘business build’ scenarios for construction of a successful industry participant to take advantage of identified value opportunities in the target segments. Potential acquisition candidates to support potentially attractive ‘business build’ scenarios would then be identified, qualified and prioritized.

At the conclusion of Phase 2, ther is review of analyses, scenarios and candidates. Prioritization of select acquisition candidates for in-depth acquisition analysis, and development of a detailed ‘ business build’ plan. At this juncture, it is important to be focused on qualified, attractive market opportunities, a business development plan and strong candidates, which support that plan.

Phase 3:
Strategy Development
The focus of Phase 3 is validation of the
value opportunity hypotheses and devel-
opment of an acquisition detailed and
‘business build’ strategy
to meet the business goals
set out by you.