Due diligence of marketing services business

Genesis was retained by an international private equity firm to conduct commercial due diligence of a South African data-marketing services business.

An in-depth analysis of the business's existing product and services offerings was undertaken in order to provide insights into the sustainability of revenues, as well as into possible growth opportunities.

The aim of the project was to determine whether the business would be a viable investment for a larger financial services entity.

The project team’s approach involved the following processes:

Desktop research and interviews with key stakeholders, including industry experts and the business’s clients. This was aimed at gaining an understanding of the industry and its competitive dynamics
Analysis of the key risks facing the business, including the direct impact of current and planned regulatory developments, as well as the risk of losing key contracts
In-depth financial analysis of the business’s past performance which, together with macroeconomic and competitive dynamics, formed the basis of a financial forecast focused on understanding the trajectory of the business’s revenues and profitability
A synergy benefits analysis aimed at illustrating how the business would potentially add value to the existing entity.