Private Equity Thesis Dissertation Image Processing
As it took its evaluation of the specific effects of each of the themes to a deeper level of analysis, the trends team undertook a comprehensive market-by-market investigation of spending patterns, supply chain implications, competitive dynamics and business cycle sensitivity on sectors representing a wide range of goods and services that fit with the firm’s experience.
Applying the guidelines that the in-house analysts developed to codify each theme, the deal teams concentrate their hunt among companies and sectors poised to benefit from opportunities that track the macro theme’s trajectory.
Meanwhile, the analysts continue to track the macro themes’ emerging impact as well as investigate potential new ones to feed fresh insights to the investment teams.
More than 40% had no investment thesis whatsoever (! Of those who did, fully half discovered within three years of closing the deal that their thesis was wrong.
In Booz Allen Hamilton's 1999 review of thirty-four frequent acquirers, which focused chiefly on integration, unsuccessful acquirers admitted that they fished in uncharted waters.
They ranked "learning about new (and potentially related) business areas" as a top reason for making an acquisition.
The firm dug into the themes, breaking them down into trends that would be likely to play out at a country level and the impact that they would have (both positive and negative) on specific industries and subsectors.
Capitalizing on these insights, the firm redirected its sector focus, concentrating on those sectors that it believed would benefit the most from the new trends and where it was confident that it had an ability to invest.