Commercial Due Diligence: children’s educational publishing (Information)

Client and project overview

As part of the commercial due diligence (CDD) process, AMR assessed the logic and attractiveness of a merger between Bendon (owned by Wicks, a New York-based private equity fund specialising in information, education and media) and Dalmatian Press.

CDD key questions

  • Will coloring and activity (C&A) be an attractive market in the next 3 to 5 years?
  • Do Bendon and Dalmatian have sustainable competitive advantages?
  • What are the prospects for the combined businesses?

As part of the commercial due diligence process, AMR prepared a bubble chart showing competitor positioning within the core market.

Highlights of AMR methodology

  • Analysed the C&A sector to identify core product categories
  • Researched the main sources of revenues from Bendon and Dalmation
  • Defined the channels of distribution to identify which produced the best performance

Results

By conducting CDD, AMR was able to:

  • Identify not just where the value lies in the core market, but also in the key segments.
  • Asses the drivers of growth potential
  • Research segmented customer behaviour and assess customer satisfaction levels
  • provide critical analysis of the potential competitive advantages and market share gain that would result from the merger. We also supported the investment and integration plan

“As usual, AMR delivered on this project. Their insights and analysis into this market were critical to our investment process and will be used by our portfolio companies as a guide to their future strategy.“ The Wicks Group of Companies

For further information please contact AMR’s Executive Chairman, Denzil Rankine.