
Hospitality Experience
Analysis of M&A Targets
Horwath HTL were engaged by a client in the hospitality sector to conduct an in-depth analysis of potential merger and acquisition (M&A) targets. The client sought to identify opportunities aligned with their strategic growth objectives, focusing on assets that offered strong market positioning, operational synergies, and long-term value.
Project Scope
We were engaged by a client in the hospitality sector to conduct an in-depth analysis of potential merger and acquisition (M&A) targets. The client sought to identify opportunities aligned with their strategic growth objectives, focusing on assets that offered strong market positioning, operational synergies, and long-term value.
The project began with a collaborative consultation to clarify the client’s investment criteria, including preferred market segments, geographic focus, and financial parameters. With these guidelines, we developed a comprehensive screening process to identify potential targets. This initial phase involved leveraging industry databases, market intelligence, and competitive analysis to shortlist suitable candidates.
For each shortlisted target, we conducted a thorough assessment of key metrics such as revenue performance, profitability, and market share. This was supported by a detailed review of operational capabilities, customer base alignment, and brand strength. Additionally, we examined the potential for synergies, including cost-saving opportunities, operational efficiencies, and revenue enhancement through cross-selling or market expansion.
Our analysis extended to risk assessment, evaluating factors such as market volatility, regulatory considerations, and potential integration challenges. For financial evaluation, we utilised valuation techniques including discounted cash flow analysis, comparable transaction analysis, and earnings multiples to determine fair market value and growth potential.
The final deliverable was a comprehensive report presenting the findings for each target, along with strategic recommendations tailored to the client’s objectives. The report highlighted the strengths, risks, and potential value each target could bring to the client’s portfolio. This enabled the client to prioritise opportunities with the greatest alignment to their goals, ensuring a well-informed approach to their M&A strategy in a competitive marketplace.
Project Location
Global