A leading company active in the global currency exchange space wanted to make a strategic investment in a competitor, which was a large player in the European currency exchange and remittances market whose parent bank was looking to divest the entity in efforts to simplify its organisation. Our client wanted to expand its European footprint through acquiring the target currency exchange, and our work with them and the other parties resulted in our client making a competitive bid and beginning the second phase of negotiations with the target company.

In our commercial due diligence for our client, we worked in four areas: market analysis; competition landscape; assessing the target company; and assessing synergies. Market analysis activities included assessing market size, product segmentation, segmentation by customers and country, and forecasting market volume and margins. In creating a picture of the competition landscape, we analysed the key players in the market and gave particular attention to selected actors. Our assessment of the target company included evaluating its market position, evaluating its physical currency exchange locations, and delving into its operation and financial strengths and weaknesses. Lastly, we took a look at the commercial and operational benefits of the merger.

Taking our work as a whole, we covered all critical aspects of the acquisition to give our clients the confidence and knowledge to make a competitive bid for the target and enter the second round of negotiations.

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