Project example: Automotive Lighting – Growth strategy vs. low-cost Asian competition

Global leader in the production of automotive lighting, facing increasing pressure from low-cost Asian competitors

Situation

• Global leader in the production of automotive lighting faces increasing price-pressure from Automotive OEMs and from low-cost Asian competitors
• Currently owned by large corporate, intention to sell assets to an investor. Mid-Cap Private Equity fund pursuing buy-and-build strategy.

Actions Proost Ventures

• Assess technology and the substitution risks of LED lights
• Analyse relevant drivers for automotive lights, separated in OEM and Aftermarket
• Determine market size (historic and projected production numbers of cars and trucks, penetration of traditional lighting technology, OEM and Aftermarket, by car segment)
• Determine the purchasing criteria of automotive OEM clients
• Evaluate growth potential of existing product lines with in-depth projections of both volumes and prices up to individual product level and car segments
• Analyse and assess the revenue plan in comparison to market and competitive development and individual product and sales initiatives
• Analyse strengths and weaknesses (based on extensive customer, competitor, and expert interviews)

Results

• Successfully performed buy-side Commercial Due Diligence including Growth Plan in the context of low-cost Asian competition in 4 weeks

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