Quick due diligence results in a well-timed purchase

Client Results Story

Opportunity
L-Box, a leveraged buyout firm, had identified PackageMaster, a plastics packaging company, as a potential acquisition target. But L-Box needed to quantify the potential benefits before it closed the deal. 

For the purchaser, the value of the acquisition would depend on: 
  • PackageMaster's ability to maintain a leadership position in its core business segment 
  • the market potential of a new segment and PackageMaster's ability to compete in it 
L-Box gave Bain four-weeks to perform the due diligence that L-Box needed so it could move quickly to complete the deal.

View Approach

Approach
Bain focused on four key areas to quickly determine the economic value to L-Box of purchasing PackageMaster.

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View Recommendations

Recommendations
Although competitors had technical and scale cost advantages, L-Box could still improve operating performance significantly.

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View Results

Results
Thanks to Bain's quick due diligence, L-Boxmade an early, preemptive bid for PackageMaster, which went unopposed. Within two years, the acquisition's EBITDA had more than doubled, exceeding L-Box's expectations.

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