Commercial due diligence on an IoT connectivity platform company
The client, a mobile network operator, was evaluating the acquisition of an IoT connectivity platform company in order to strengthen their IoT offering and positioning in the value chain. The project entailed conducting the commercial due diligence and had two main streams – validating the market potential and validating the TargetCo potential. The team was a mix of Northstream and Accenture consultants that brought both commercial due diligence and IoT subject matter expertise.
As part of validating the market potential we calculated addressable market size and identified market growth drivers, key market disruptors and the potential evolution of the IoT value chain in the next 5 years. The scope also included competitive landscape overview and customer archetype analysis. The analysis was conducted by our Northstream IoT subject matter experts who bring broad experience from IoT and understanding of the overall IoT value chain.
As part of the second stream – validating the TargetCo potential – we conducted interviews with TargetCo’s management to understand TargetCo’s strategy and offering and evaluate the unique selling points, go-to-market strategy and the scalability of their operating processes. We provided also high-level estimation of the potential synergies and developed growth forecasts that we benchmarked with management’s forecasts. The due diligence was conducted under a very short timeframe to accommodate the client’s timeline.