Objective: Source of Asia helps a leading manufacturer of spare parts in the Independent Aftermarket, accelerate growth in South-East Asia by identifying suitable acquisition targets in the automotive aftermarket sector.
Project Background:
Being a part of a global industrial group, our client specializes in spare parts in the Independent Aftermarket and aims to expand its footprint in South-East Asia. The company sought to fast-track its growth by acquiring an aftersales independent market company aligned with its value chain, with a focus on parts and manufacturing capabilities.
Solutions:
Source of Asia provided comprehensive support throughout the acquisition process:
- Market Research & Target Identification: Conducted in-depth research to assess the market landscape, key players, and regulatory environment in South-East Asia.
- Target Company Identification: Developed a long list of potential targets that matched the client’s criteria: companies involved in the same value chain, with a strong portfolio of parts or manufacturing capabilities.
- Initial Screening & Mid-List Creation: Applied screening criteria to prioritize companies based on strategic fit and acquisition feasibility, followed by contacting potential partners to gauge interest.
- Detailed Supplier Analysis: Shortlisted candidates were thoroughly analyzed, including financial assessments and alignment with the client’s growth strategy.
- Facilitating Meetings: Arranged B2B meetings with selected companies to explore M&A opportunities and discuss potential collaborations.
Results:
- Target Identification: Over 30 potential acquisition targets were identified, with a focus on companies managing parts similar to the company’s portfolio or having manufacturing capabilities in the automotive aftermarket.
- Successful Screening: From the initial list, 12 companies were shortlisted for detailed analysis based on financial strength, strategic alignment, and operational compatibility with the client’s goals.
- Active Engagement: 8 of the shortlisted companies were contacted, and 5 expressed strong interest in the potential acquisition, providing a solid foundation for future discussions.
- Partnership Opportunities: Meetings were successfully arranged with 4 key companies, and initial discussions have led to ongoing negotiations, positioning our client for a seamless market entry in South-East Asia.
As a result, our client is now poised to move forward with its acquisition strategy, ensuring a smooth and accelerated market entry into the region.
