Challenge: A national building products pro dealer sought to scale its business by strategically purchasing regional dealers in several geographies.
Approach: Principia was engaged to assist in the corporate growth strategy planning to achieve this goal. Several targets in each region were identified, leading to in-depth assessments of each company, initial approach by Principia, and support of each deal. Principia was further engaged to provide commercial diligence in each deal to evaluate underlying market fundamentals, assess each target’s image and position in the marketplace, and confirm input assumptions for each seller’s revenue and margin projections.
Outcome: Client initiated a series of preemptive negotiations to acquire 5 pro dealers, representing over $200 million in annual revenues.