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Our client is a nationwide social- and health services provider offering living-, homecare- and response alarm services for the elderly; living services for disabled and mental health patients as well as care logistics services

Objectives of the project

  • In spring 2010 our client considered the acquisition a target company from its owners which included a private equity company, the companies’ management and the Finnish Red Cross
  • The sales process of the company was managed by the Skandinaviska Enskilda Banken as an auction which our client had decided to participate in
  • In order to support making the proposal, our client commissioned BearingPoint to undertake a business due diligence analysis with the following key objectives:
    • Analyze the validity of key sales arguments
    • Identify potential ”landmines”
    • Form a basis for company valuation
    • Strengthen position for negotiations
  • From our clients viewpoint, it was critical to get fact-based insight on the municipal customers’ attitude towards the company as a service provider and about the development of the private sector service providers’ role in the Finnish health system in the next 5-10 years

What BearingPoint did

  • Commissioned by the client, BearingPoint undertook a business due diligence analysis of the target company and the social- and health care markets in Finland in March-April 2010
  • The Business due diligence analysis included the following five business areas – with emphasis on the living services:
    • Living services for the elderly
    • Home care services
    • Care Logistics
    • Living services for special groups
    • Response alarm services
  • BearingPoint analyzed each of the five business areas in terms of e.g. market size, growth drivers and growth outlook, competitive landscape, price development, customers’ purchasing behavior and key change forces
  • In addition, BearingPoint made a revenue forecast for 2011-2013 for each of the business areas based upon a service unit level analysis (including local customer needs, competitive landscape and the target company growth plans)

Measurable & concrete results

  • Our client made a winning proposal based upon the business due diligence analysis undertaken by BearingPoint
  • Our client orally indicated being very satisfied with business due diligence and especially with BearingPoint’s in-depth industry expertise and the granularity of the analysis
  • As a corroboration of our clients satisfaction with the engagement, our client commissioned BearingPoint to support the target company in determing its growth strategy in fall of 2010

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