Customer and portfolio analyses supporting commercial and financial Due Diligence on the seller’s side
Our client, a leading European Internet company, had launched a bidding process with several sales rounds for their sale. In the course of the bidding rounds, numerous questions regarding the value of the customer base and the portfolio had to be answered. niologic provided all customer analyses and product portfolio analyses.
Challenge
In the course of the bidding process, sales documents had to be prepared and numerous analyses of customer base’s and the brand portfolio’s value had to be prepared within a short time. The questions were divided between the negotiation sub-projects Financial Due Diligence and Commercial Due Diligence and had a high number of answers.
Procedure
niologic was involved from the beginning of the sales preparations on. A powerful data structure for the analyses of customer data was planned and completed on schedule on an InMemory database before the start of the bidding rounds.
Numerous key figures were determined with the customer in advance. In addition, corresponding live reports such as customer lifetime value (CLV), churn rates, monthly recurring revenue (MRR), rotational churn, etc. were implemented using in-memory analytics and Tableau™
Subsequently, niologic supported the transaction team and the client’s internal consultants in the preparation and response to numerous ad hoc requests and data exports.
In addition, accruals and deferrals were calculated in accordance with IFRS and US-GAAP in order to make the customer base analyzable and predictable for the international buyer group.
Result and customer value
Through the trusting cooperation with the customer’s transaction team prior to and during the Due Diligence, a powerful project team was formed, now able to answer all questions in the areas of finance, marketing, sales and support in the shortest time possible. By creating a powerful data structure and IT infrastructure, even complex analyses such as Rotational Churn could be clearly identified when the contract was changed. Overall, the bidders confirmed the high quality of the data-driven customer processes and evaluations. In the end, a successful transaction was concluded at a purchase price of around USD 1.7 billion according to public announcements.
