Acquisition analysis

Over the last two weeks I have been working on the competitor / acquisition analysis for our funding plan.

The interesting aspect of our business sector is that the market is highly fragmented. We have hundreds of small players, facing limited growth opportunities beyond their niche product. The larger competitors are Chinese government affiliated and there is heavy association with weak organization and strategy. Chinese media players typically have issues achieving critical mass and exiting via public markets due to limited size / scope. This context lends us an attractive opportunity for consolidation, given our market positioning. Furthermore, as we sharpen our acquisition platform, we can virtually guarantee that a targeted acquisition's cost structure will be reduced when integrated. We can also push the acquisition's sales products through our national network. In return, we share the management infrastructure to more rapidly achieve critical mass and market influence.

My focus at the moment is on niche assets in our targeted verticals: Nutraceuticals and Biotech. Our previous round of funding involved the acquisition of a pharmaceutical research firm which completed our company's ability to serve all aspects of the pharmaceutical supply chain.

The key issue behind the acquisition analysis is to explain to potential investors the strategic reasoning for targets for our acquisition / consolidation platform. Hence I have to analyze company products as well as various key metrics to determine suitable targets. In the coming weeks, I will evaluate whether the target(s) will help us reach critical mass, i.e. enough interest generated for an IPO.