CDD: AMR assess the attractiveness of a high-pressure equipment provider

Commercial due diligence (CDD): high-pressure products

Client and project overview

  • A New York-based private equity firm asked AMR to assess the attractiveness of a leading provider in high-pressure equipment, as part of its acquisition due diligence process. (The company assessed was a manufacturer of mission-critical valves, fittings, and tubing for use in high-pressure applications in industries such as oil & gas and waterjets.)

Key issues​

  • How fundamentally attractive are the company’s end markets?
  • What is the company’s competitive position?
  • What are the company’s growth prospects and what are the risks?

Highlights of AMR’s Methodology​

  • AMR visited the facility before speaking with purchasers of high-pressure equipment on oil rigs and testing labs; waterjet OEMs; distributors; a range of competitors; and various market experts
  • AMR drew on its flow control experience and combined these interview results with industry analysis. This allowed us to assess how the company’s products are purchased and the market drivers and trends which would impact the business 

​Results​

  • AMR concluded that not only did the company operate in a fundamentally attractive market but its unique value proposition provided it with a sustainable competitive advantage within its major customer groups
  • AMR’s work uncovered key insights which proved critical to the acquisition process and were highly valued by both the private equity and debt sponsors to the transaction
  • AMR also highlighted a range of “go-to market” actions that the business was able to implement subsequently 

Want to know more?

For further information on AMR’s experience in clean and niche industrials, please contact:

Denzil Rankine
Executive Chairman
denzil.rankine@amrinternational.com