Client: International development bank
Target company: Industrial company, Eastern Europe
Size of the target company: 300 people
Turnover of the target company: 60 million Euros
Time span of the project: 02/2009 – 04/2009
As part of the target company’s growth strategy, the company had decided to make a significant investment to increase its production capacity. The product portfolio of the company was at the same time extended from manufacturing semi-finished products to manufacturing final consumer products. The target company had applied for funding from a bank. The bank was considering a decision to fund the growth of the company by investing straight to the company’s equity, by which the bank would become the second largest shareholder of the company. The bank ordered a Due Diligence report, where the competitiveness of the company was evaluated from the commercial and technical points of view.
The Due Diligence report gave the bank reliable information for making the funding decision. The bank invested a sum to the company’s equity for a 25 % ownership of the company. The client company was thankful of the valuable and concrete recommendations that it could utilize in developing the company further.