Here are some key areas where market research can make a real difference to how investment banks understand potential opportunity and what questions to ask to get a clearer picture of a company's performance.
When raising capital, what do you use to determine the value and risks of a company to price their securities? Imagine this, a company hands you their close-to-perfect financial statements, indicating they should be priced higher when it's time to issue their new securities to fund their upcoming project. They've shown ideal growth of, let's say hypothetically, 10% year-over-year.
Would it impact your securities pricing to know that your client's sector is growing 20% year-over-year?
Their biggest competitors have been growing at least 15% and have a footprint in markets your client does not?
Does that change your thesis of this client's value and risk?
Or when conducting an IPO, are you using reliable and detailed numbers to capture the true Total Addressable Market (TAM)? The true "size of the prize" includes both market sizing made up of both public and private companies as well as sector sales from all channels. An accurate TAM should capture the available market inclusive of competitors who generate sales through channels ranging from stores, online and direct selling to fully understand the potential.
What is the source of growth for this acquisition target?
What is the ratio of an identified target company's portfolio of growth brands/product lines versus declining brands/product lines?
Are they in geographies exhibiting ideal macro scenarios for this target company and sector?
What is the combined share after the deal?
How would all of this affect the negotiation process?
Granularity is key. The advantages lie in being able to understand the most detailed depiction of the sectors and sub-sectors, comprehensive analysis of a target company's product lines/brands and core consumer trend drivers based on the geography's macro environment and customer preference.
What is an adequate offer from the buyer?
Is it in line with your client's performance within the sector and sub-sectors?
Do you see interesting and rich sub-sector market sizes your client should grow in after they get acquired or merged?
Euromonitor International works with a variety of top, middle market and boutique investment banks globally and have answered all the questions above through our easily accessible market research platform and other research offerings. We provide the fundamental insights to investment banking firms through our coverage of numerous consumer sector's total market sizes, public and private company/brand shares and the channel breakout for up to 100 countries. Additionally, we offer granular depiction of the macro and socio-economic factors impacting the landscape for up to 210 geographies. Euromonitor International have and continues to aid our investment banking client's specific business questions through our custom IPO and consulting work.
Request a demonstration to learn more about how Euromonitor International can help investment banks.