Keywords

• Evaluating growth potential
• Business Strategy
• Mergers & Acquisitions
• New market entry

Description

• Background

The client is a global Tier 2 manufacturer operating with the Automotive market. The company has strong manufacturing capabilities, with strong ties in the sector at global level and highly profitable.

With the growth of the New Energy Vehicles the automotive sector is undergoing prudent changes and the client aims at expanding their product portfolio with a dedicated portfolio for the new trends in the sector. Furthermore, having strong manufacturing capabilities the client is interested in exploring other manufacturing opportunities which are profitable, high-growth and where the client can have a competitive advantage. For this scope, the MACOA team was given the mandate to assess the strategic options that this company has at global level.

• What did we do?

We conducted the following actions: internal company assessment (technical, manufacturing and financial assessment), e-mobility market review, factory automation market review, assessment of the market dynamics per each sector, product to market fit analysis, identification of investment opportunities, development of the business case, devise the high-level strategy on product launch and market entry.

Through the advisory process the company has had the opportunity to validate the recommendations and consider alternatives such as entering the market on their own, licensing and franchising. Furthermore, MACOA has led the process of partner identification (partners per each opportunity selected by the client), business case development, facilitate the introduction between potential partners and negotiated on behalf of our client.

• Results

The client was presented with investment opportunities within the e-mobility sector and manufacturing accordingly to their capacities, capabilities and expected profitability from the investment.

Through this approach the client had several alternatives for investment in China and Europe. As a result of the advisory the client has now expanded their presence in Europe by setting up their own premises in order to facilitate and control the new undergoing investment.