Case Studies

Due diligence drives PE firm’s profitable investment in digital advertising 

Posted by | Fuld & Company

Fuld & Company helped a mid-market private equity firm assess a high-potential investment in a digital advertising company. Informed by Fuld’s in-depth market analysis, insights, and competitive intelligence, the firm proceeded with a majority investment that positioned the target company for long-term growth and industry leadership. 

Objective 

The private equity firm aimed to expand its portfolio with a strategic acquisition in the digital advertising space. Their goal was to: 

  • Identify the customer trends and growth potential of the digital advertising market. 
  • Understand the target company’s competitive positioning.  
  • Mitigate risks and evaluate opportunities for sustainable returns. 

The private equity firm required comprehensive due diligence to validate the investment opportunity and ensure alignment with their long-term strategy. 

Solution 

Comprehensive Market Assessment  

Fuld & Company conducted a rigorous market analysis tailored to the digital advertising sector. Key deliverables included:  

  • Market size and segmentation:  
  • Calculated the total market opportunity for digital advertising, segmented by in-house capabilities versus purchased solutions.  
  • Analyzed adoption trends for digital extension services among advertising agencies and local media companies.  
  • Customer behavior and purchase trends 
  • Identified key decision-makers influencing the adoption of digital advertising platforms.  
  • Explored the perception of digital solutions among local media sellers as tools to drive revenue and commissions.  

Competitive intelligence  

We conducted a detailed comparative analysis of the target company versus competitors in the private equity investment, focusing on:  

  • Pricing strategies, product offerings, customer service, and capabilities.  
  • Key opportunities and risks for digital extension providers over the next five years.  

Integrated Research Methodology  

To ensure actionable insights, we employed a mix of:  

  • Desk research to assess industry trends and market dynamics.  
  • Expert interviews to provide qualitative depth.  
  • Quantitative surveys to validate key findings.  Our approach unlocked new opportunities for the private equity firm.  

Outcome 

Fuld’s analysis provided the private equity firm with:  

  • A comprehensive understanding of market potential, confirming a favorable investment landscape.  
  • Detailed insights into the target company’s value proposition, customer adoption risks, and opportunities for growth.  
  • A strong foundation to proceed with a majority investment. This step was crucial in the private equity strategy.  

The investment enabled the development of a scalable, innovative digital advertising platform. Supported by Fuld’s ongoing guidance, the portfolio company has enhanced its product offerings and customer service, solidifying its position as a leader in the digital advertising space.  

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