PLANNING FOR U.S. EXPANSION
The Client is a large Canadian 3PL. It services the healthcare and related industries and has gained a significant market share in Canada.
The Client wanted to expand its business into the US marketplace. This was to be achieved by acquiring an existing US 3PL that has national presence. It could also include acquiring two or more organizations in order to achieve the required geographical reach.
The approach included:
- Documenting criteria of target company (size, industry focus, depth of customers, service capability)
- Identifying related NAICS codes and conducting initial screening
- Using available industry information (market research databases, industry publications, lobby groups, industry associations, etc.) to gain knowledge of leading US 3PL’s
- Conducing assessments (through questionnaires and conversations) of potential 3PL acquisition targets
- Developing a short list of potential targets
The output was a short list of 3 potential target organizations. The Client could then initiate further in-depth discussions to determine the optimal target company. Included were:
- A comparison of capabilities
- SWOT analysis of each target company
- Impact assessment for each target company
- 5 year plan incorporating full integration of capabilities over that period
The client made initial contact with each of the 3 target organizations. It then had in depth discussions including disclosing the intent, conducting site visits and confirmed the best target company. The Client ultimately decided to partner with the optimal company with various options in the future.