Does the customer logic of this acquisition hold?

The evidence and analysis

Interviews and a survey examined demand for the two providers’ information services. The aim was to test a specific part of the acquisition rationale: the potential to sell additional services to each company’s existing customers.

For the acquirer’s customers, chemical and polymer producers, the question was whether the target’s information services would be useful enough to buy. For the target’s customers, packaging converters and consumer brands, the research tested interest in the acquirer’s data and analytics.

The research design and discussions with the sponsor followed the acquisition timetable. The analysis distinguished expressed interest in information services from evidence of future purchases, and from assumptions about how quickly cross-selling could generate revenue.

What the work clarified

Respondents valued granular supply-and-demand intelligence and wanted to select services relevant to their work. Demand for the combined offering depended on how well the acquirer’s and target’s services met those specific needs.

What this meant for the decision

The acquisition case depended on matching each customer group’s needs with relevant information services. The findings gave the buyer a basis for assessing where cross-selling could generate additional revenue.