The corporate venturing arm at a large, international, universal bank was contemplating a minority stake investment in a fintech company providing turnkey financial solutions for banks. The bank was already in partnership with the fintech and wanted to strengthen its relationship with the entity and at the same time financially benefit from the company’s increasing valuation. Thus, they enlisted our commercial due diligence services to conduct an independent review of the fintech before making their investment. We provided the bank with quantifiable input for their valuation of the fintech company and a strategic rationale for the investment that led the bank to successfully acquiring a minority stake in the company.

We supported our client with commercial due diligence by assessing the target company, which we used to qualify our opinion on the potential deal. In our assessment, key points of analysis included considering the target’s unique selling points, problem-solution fit, product quality, management, competitive position, and future outlook as well as analysing their customer segmentation and considering the strategic rationale for the investment. In terms of the latter, we took into account commercial and operational synergies, potential use-cases for partnerships, IT interoperability, even giving suggestions on how to partner with an IT platform that would best leverage the bank and the fintech’s capabilities.

All of the above resulted in the bank making an investment and entering into a strategic partnership.

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