Temple provides independent buy-side advice for acquisitions and support on development of Joint Ventures (JV) and alliances. This support includes:
- Outside-in, target reviews
- Preliminary target reviews
- Structured due diligence
- Post-acquisition diagnostics
- Turnaround diagnostics
Examples of how we’ve worked with clients in this area:
New Zealand, Joint Industry/Government FDI programme
Commercial advisor to US$500m investment feasibility study
Identified and quantified benefits to multiple stakeholders across industry and government for offshore investment programme in Asia. Developed entry strategy and validated with a team in Asia.
Sydney, Australia Private Equity Fund
Due diligence of AU$300m services company
Undertook a detailed review of the market and company performance of a potential acquisition for a leading Private Equity fund. Work included market structure analysis, identification of opportunities for growth and risks around existing revenue lines. The resulting report was a critical element of the fund securing bank debt by validating the likelihood of proposed future cashflows and in doing so giving the bank comfort around its investment.
Australian Private Equity Fund
Commercial due diligence of a AU$500m mining services company
The analysis included identifying cash drivers, different business models with different risk exposures and performance versus competitors. Identified correlated significant price and volume risk under a downturn scenario that would have beached proposed bank covenants and had not been discovered by the fund. On the basis of this risk to its portfolio the client chose not to proceed.
Australian Private Equity Fund
Due diligence of a leading NZ manufacturer
Undertook a cost and throughput focused diagnostic of a New Zealand technology manufacturing firm. The work concluded with the fund taking a stake in the business
Western Europe, Global Minerals Company
Assessment of manufacturing capacity requirements
Undertook an assessment of the opportunities for cost reduction given the changing supply and demand economics. Work concluded with the closure of six manufacturing sites, identification of asset acquisition opportunities in China and Nth Korea and prioritised improvement opportunities at Europe’s largest site
New Zealand, Infrastructure Investment Business
Sector review and commercial due diligence
Defined and assessed opportunities within a sector of the agricultural value chain to support the Board’s investment strategy development. Subsequently undertook detailed market due diligence for an target investment within this sector
US Loans originator
Identified and implement cost reductions of US$4 million (supporting sellside value identification)
Led a dedicated 5-person client team with close contact to the US CEO to determine total cost base, identifying personnel and non-personnel cost reduction opportunities valued at 15% of cost base. Cost levers included organisation restructuring facilitated by the elimination of non-value-add activities (Business Process Re-Engineering), outsourcing (both locally and offshore) of non-core activities, reallocating work to lower cost resources, and restructuring credit lines (US$400m).
Identified performance improvement opportunities of over US$ 5 million (representing 150% of EBIT) for potential acquirer
Undertook quantitative analysis of a complex, multilevel discounting and pricing structure to identify improvement opportunities in a retail chain. Developed a models to determine fully loaded costs by product and from this assess true product profitability (Direct Product Profitability) and customer profitability. The engagement led to recommendations on customer and product pricing management and a subsequent doubling of profit inside twelve months.