EXPANDING INTO NEW INVESTMENT OPPORTUNITIES THROUGH ACQUSITION

Improved market evaluation and more accurate bid for target acquisition

SITUATION

A private equity firm sought new investment opportunities by expanding into high compliance cloud and data services targeting the federal government domain. Capto was brought on board to evaluate a potential acquisition target. Focus was placed on a market assessment that included a demand and competitive analysis, a technical review of the relevant compliance standards, and an evaluation of how the market is addressing the standards.

THE SYNAPTIC SHIFT

Our SYNAPTIC approach got its start in M&A. We have long recognized the need for a methodology that meets the high demands of M&A clients by providing the right data and analytics to drive confident, timely investment decisions. When applying our thorough, fast and innovative focus to the M&A process, companies are empowered to make “right-sized” investments with reduced risk.

For this private equity client, the Capto team’s in-depth knowledge of the federal government and computer security domains was table stakes for client engagement. Capto combined these requisite skills with our team’s knowledge of other high compliance applications via our experience in healthcare and financial services to expand our client’s thinking regarding the target market. The target acquisition could help our client penetrate not only federal government opportunities, but also several other high compliance industries . 

RESULTS

This data-driven shift in thinking allowed our client to validate its investment thesis, resulting in an improved market evaluation process and more accurate bid for the target company.