Commercial Due Diligence to Quickly and Accurately Assess a Deal

The Customer Challenge Solved

A well-established investment firm required our due diligence support to identify the market opportunity of an organisation seeking £4.5 million in growth funding. This was to grow their presence in the cyber security marketplace—a space Larato has a wealth of experience and knowledge in.

“Larato delivered a due diligence report that was like no other we’d seen. Everything up front with no surprises. Exactly what we needed.”

PARTNER

Threat eliminated by Larato

A missed opportunity to grow in a booming and innovative sector, or alternatively, the ill-advised investment in a business which is unable to deliver on its investor document and forecasts.

Delivery Summary

Fast and effective due diligence allowing the investor to quickly accelerate interest or discount the opportunity.

Key Deliverables

  • An in-depth market, organisation, and solution review to quantify the viability of the new cyber security business.
  • Analysis of the market share available to the opportunity, to identify if growth predictions outlined were realistic.
  • Analysis of the current proposition. How was it or how could it be differentiated in order to gain market share?
  • Validation of the go-to-market strategy and intended buyer personas.
  • An audit of the leadership to identify if the skills were there to deliver on predicted revenues.
  • Analysis of the scalability of the business.

Outcome

The due diligence performed by Larato was able to demonstrate that the investee company had a niche solution for the market but also identified weaknesses in their go- to-market strategy including understanding who their actual buyers are and how they needed to be sold to was also an issue. Larato was also able to determine that the investee company’s pricing strategy was suboptimal—the investment did not proceed based on the confidence in the management to deliver the growth and ROI needed by the investor. The Investor has subsequently engaged with Larato on further opportunities.

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