Background:

• Fund is participating in an auction to invest into a major pleasure yacht builder in Europe.

Client’s Requests:

• Required to perform operations due diligence on the target company’s existing operations in Asia

Our Work:

• Reviewed the market outlook of this company
• Conducted primary & secondary research:
• Conducted consumer surveys
• Interviews with buyers, industry experts, dealers, industry associations, etc.
• Reviewed trade statistics, industry reports, etc.

• Formulated a growth potential report on the company to advise the Fund on the existing and potential profitability of the company

Results:

• Presented report to the Fund with the opinion that:
• the company is currently not, and will not perform well in the Asian market
• relocating manufacturing to Asia is not a good way to lower production costs, due mainly to immature industry with no skilled workers
• Reasons for low performance of the company in Asia include:
• Majority of the Asian market is not susceptible to their type of products
• Overall general downturn in the yachting industry the company is currently in

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