A private equity firm client of Parthenon’s was interested in
purchasing a manufacturer of articulating ladders, sold nationally
through major hardware and home improvement stores
Parthenon was tasked with answering the private equity client’s key questions in order to confirm or deny its investment thesis. Those questions included the following:
What are the key dynamics of the ladder market, including size, growth and segmentation?
What is the competitive landscape of the ladder market and how is it changing?
How do the channel and end-users view the product and why do they choose it over other options?
What additional growth opportunities exist for the target company?
Parthenon Action
During the 6-week engagement, Parthenon used extensive primary and secondary research efforts to determine the product’s position within key retailers as well as its market penetration
Specifically, Parthenon executed interviews with several key constituencies including:
Management team members
Consumers (ladder owners, articulating ladder owners, and non-ladder owners)
Professionals (contractors, electricians, and painters)
Retailers Buyers (Big Box, franchise hardware, and independent hardware)
Competitors
Industry sources
Outcome
Based on the outcome of Parthenon’s work, the private equity client ultimately decided not to purchase the target company.
