Global Business Development, Vision, Strategy, M&A

Client: US based private equity company

The Assignment:

Client was interested in embarking on a global acquisitions strategy in order to grow in the field of chemicals. They approached DestinHaus to help them establish a vision and strategy in this area and to help them achieve their goal. Being new to chemicals, they were not aware of what it takes to successfully build and operate such a business.

Results:

Utilizing our decades of industry expertise, we quickly developed a long-term goal and suitable short-term goals prior to embarking on an acquisitions strategy. After studying the culture of the client, along with the right fit with their culture, we identified suitable anchor/core acquisitions along with the appropriate bolt-on acquisitions. We established the appropriate key drivers of industry consolidation, cost reduction and focused growth. The aim was to build a $3 billion global business within a year and then to IPO or sell the business thus built. Overall, the project necessitated innovative thinking and strategic business-building.

DestinHaus identified the appropriate platform acquisition in the UK, coupled with a series of bold-on acquisitions that would enable the formation of a world-scale, world-class international specialty chemical business. Utilizing our relationships in the industry, we set up the requisite meetings and brainstorming discussions with the relevant executives, convinced the CEO of the platform acquisition of the strategic rationale of our project so much so that the CEO was willing to recommend our approach to the Board of his company. Unfortunately, the global economic crisis occurred and the private equity company went through a liquidity problem. The debt market dried up and so did the opportunity. Eventually, the stock price of the platform acquisition doubled and it hence became less attractive as an acquisition target. The market proved that the DestinHaus approach would have been an extremely attractive acquisition target if the timing had worked out appropriately.