Project example: Commercial Due Diligence - Automotive sensors

Situation

  • Global leader in design and production of pressure and flow sensors used in diesel exhaust purification systems
  • Owned by Siemens, intention to divest non-core division. Mid-Cap PE fund wants to buy division.


Actions Proost Ventures

  • Assess technology and the substitution risks of ceramic thick-film sensors in diesel exhaust purification systems AdBlue and EGR (Exhaust Gas Recirculation)
  • Determine market size (production of cars and trucks, AdBlue / EGR penetration) and cyclicality
  • Determine purchasing criteria of automotive OEM clients
  • Evaluate growth potential with in- depth projections of both volumes and prices. Assess business plan vs. market, competitive development, and growth initiatives
  • Assess current trading and impact of Covid-19
  • Analyse strengths and weaknesses (based on extensive expert interviews)


Results

  • Successfully performed buy-side Commercial Due Diligence in 3 weeks during Covid-19 (March 2020)
  • Client shortlisted in final round. Siemens eventually sells to Chinese fund Wise Road Capital.

Download here in pdf the detailed project example Commercial Due Diligence – Automotive sensors

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