Digital X-Ray for an acquisition, foreseen by Peak6, and resulting with a No-Go recommendation

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Challenge

Peak 6 was contemplating the acquisition of a company in the video streaming industry. This was a new industry for them and did not have experience in what makes a company good at what they do in the digital space.

They wanted this analysis to be confidential so were not able to provide many insights on what the company was doing besides what they gathered during their first exploration.
They were also willing to make a decision quickly as to whether they would engage further with this acquisition.

Results

2-week

Analysis

1

Bad Investment Avoided

How we did it

VDI analyzed the following:

  • Marketing positioning

  • Product offering and portfolio

  • Digital presence

  • Competition

  • Organization structure

  • Team background and digital experience

  • Distribution channels

  • Pricing

 

We then looked at the challenges and put together a recommendation on how they could overcome the challenges, what investments would be needed to make them competitive in their market, how fast they would start seeing results.

Looking at the gaps that were existing, we estimated that it would take them at least 3 years to be able to turn around the company and gave them also an estimate of the magnitude of the investment they would need to make in order to achieve the right results.

We recommended a no-go but we gave them options and the right understanding of what it would mean if they wanted to pursue this investment.