CHEMICALS AND POLYMERS
POLYMER PRODUCT ACQUISITION ASSESSING THE VALUE EQUATION
Bush Consulting Group was hired by a client interested in pursuing growth through acquisition into adjacent markets.
The client sought to validate the value of the primary target, who was asking a substantial premium over other players in the space.
After evaluating, Bush Consulting Group determined the target company’s performance and the market's potential warranted the elevated premium. The team's recommendation was substantiated by three factors: the target's modern capital equipment which drove 40% higher productivity; logistical advantages of being located near rapidly growing energy markets; 30% currency-driven pricing advantages over competitors. The advantage was deemed sustainable for 5 years.
As a result of Bush Consulting Group's critical insights, the client moved forward with the acquisition and was rewarded with a large increase in stock valuation.
polymer product acquisition RAPID GROWTH IN SHARE VALUE
