Growth series: Market research delivers value

 

Deep analysis adds insight on potential for success

 

Whether an acquisition is being considered or a potential new strategy involves a new product or service line, market research often is an essential element for growth.

 

Market research can provide answers to pivotal questions such as:

  • What’s the size of a given market?
  • What kind of competition exists?
  • What relevant information is known about the customers?
  • Are changes expected in related technology or regulation?
  • What price points would be appropriate?

“You’re doing a deep analysis to figure out, is this thing as big an opportunity as we think it is?” said Chris Smith, Chief Strategy Officer for Grant Thornton LLP.

 
 

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Evaluating value

 

 

 

 

Getting perspectives for pricing

 

When an acquisition is under consideration, market research makes sense for both the buy-side and the sell-side. For the buy-side, it can provide detail around the value of the business opportunity. For the sell-side, it can give an important perspective to consider in pricing the deal.

 

“The same information is being analyzed [for buy-side and sell-side], it’s just presented differently,” said Elliot Findlay, National Managing Principal, Mergers & Acquisitions, for Grant Thornton.

 
 

2:48 | Transcript

 
 

Organic growth insights

 
 

Gain awareness of revenue scenarios

 

Market research also can be an important part of an organization’s organic growth strategy.

 

Research provides valuable insights when companies are considering expanding to new markets or launching products or services that are outside their core.

 

“Let’s increase awareness of what all those revenue scenarios could be,” Smith said, “and take a systematic approach to quantifying it so that before you add that new product or service to your portfolio, you know what you’re in for.”

 
 

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Content disclaimer

This Grant Thornton Advisors LLC content provides information and comments on current issues and developments. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.

Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.

For additional information on topics covered in this content, contact a Grant Thornton Advisors LLC professional.

 
 

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