Private Equity Case Study - Strategy

Client Background: Our client, a medium-sized Canadian private equity fund, was interested in understanding the country’s retail apparel sector and its key players. Our mandate was to identify investment opportunities in this market.

Service Offerings: We provided a team of sector professionals, who conducted extensive primary and secondary research over three weeks, including:

• Analysis of market dynamics and growth potential through extensive primary and secondary research involving the identification of potential investment opportunities based on an analysis of market size, forecasts, emerging trends and growth drivers. The team also drafted and conducted detailed interviews with various shareholders to assimilate current market perceptions and future expectations. Primary research included interviews with experts as well as senior management of key companies.

• Competitive landscape mapping: The team classified leading market participants by distribution formats in each region. It made a thorough operational analysis of key performance indicators including the number of stores, new store additions, average store size, sales, footfalls, conversion ratios and per capita expenditure. The in-depth financial analysis took into account revenue growth and working capital analysis, profitability and return ratios, as well as valuation multiple comparisons.

• Key company prioritization: The team identified and prioritized key targets based on growth prospects, market positioning, operational efficiencies, valuations, and synergies with the existing portfolio.

Results: The Copal team generated market-specific insights which helped the client identify potential investment opportunities at significantly lower cost than if the analysis had been sourced from a bulge bracket strategic consulting firm.

Contact us: private.equity@copalpartners.com