Due diligence of major SA credit firms

An established private-equity investor asked Genesis to objectively assess the strategies of two major South African credit services businesses – a credit bureau and a leading data-marketing services provider – as part of its buy-and-build investment into the industry.

We assessed each of the growth trajectories of each of these businesses individually and collectively to determine their attractiveness.

Our team’s approach to deliver value to our client comprised a three-phased workflow focused on analysing the macroeconomic drivers of demand for credit services; the structure of each industry and its competitive dynamics; and each business’s past performances. Our analysis formed the basis for a financial forecast mapping the trajectory of each business’s revenue growth and resulting profitability.

Our work was incorporated into the client’s investment committee processes and directly led to the acquisition of both businesses. The deal won the Catalyst Private Equity Deal of 2014 accolade at the annual South African Dealmakers Awards in 2015.