Commercial due diligence of specialist NPM vendor Accedian Networks for Bridge Growth Partners

The problem

Bridge Growth Partners entered exclusive negotiations to acquire the network performance monitoring (NPM) vendor Accedian Networks. It engaged Analysys Mason to carry out a commercial due diligence of Accedian Networks. The aim was to gain clarity on both the intrinsic value of the target and the presence of exit options for the future investor

The solution

• We conducted a market sizing exercise, identified the addressable market and developed a four-year market value forecast based on the analysis of the key market dynamics, including demand and supply.
• We carried out more than 15 interviews with customers and partners to collect feedback about the target's team, products and technology
• the management was also interviewed
• We assessed the target's positioning in relation to its main competitors (see right-hand chart), thus identifying any competitive shortcomings and the key risks
• We reviewed the business plan developed by the management, assessing financial key performance indicators and the customer pipeline
• Our final report provided a comprehensive over view of key business risks and opportunities, as well as exit valuation considerations

Figure 1: Findings of the competitive review analysis

The result

Our team's continuous support and contact gave the client and its investment partners the opportunity to get acquainted with the technicalities of the network performance monitoring space and guided them through the business, technology and market context.

Bridge Growth Partners closed the transaction and acquired a majority equity stake in Accedian Networks worth USD100 million.