Strategic & Commercial Due Diligence | Légion/Antibes Project

Client Needs & Objectives

Our client, a French Mid/Large-Cap investment company, wanted to assess the opportunity of investing in a joint-tenancies insurance broker through a LBO takeover.

The objectives were as follows:

  • An analysis of property insurance market: drivers, competition, potential growth and regional expansion
  • A quality evaluation of clients’ book and of risk carriers
  • An evaluation of the target’s positioning and a reputation review
  • A business model review
  • A review and challenge of the Management Business Plan

Our Approach

  • Value chain analysis, market drivers, historical / future trends and key stats
  • Assessment of the target’s potential growth opportunities
  • Assessment of the target’s’ book and of risk carriers
  • Business model review, of HR and commercial organisation and of IT systems
  • Challenge management business plan assumption
  • Identification of regulatory context and of its impacts

Client Benefits & Main Results

Clear understanding of the value chain, and the regulatory environment and its evolution

Risks identification under human, operational and commercial perspectives

Value creation opportunities for the investor, according to the reviewed BP and evaluation of exit strategies

Presentation and Q&A sessions to convince the Private Debt providers as well as our Client’s investment committee

Identification of build-up opportunities

CH&Co. assisted the PE fund in two of the Build-ups, performing the strategic DD in order to assess product complementarity and potential synergies