Situation:

Tecumseh Power was a ~$300 million manufacturer of small gasoline engines and transaxles used in a variety of outdoor power equipment including lawn tractors, generators, and snow throwers. Major customers and strategic partners included The Home Depot, Lowe’s, Sears, Menard’s, MTD, Toro, and Ariens.

Ameridan’s Role:

A leading private equity firm retained Ameridan to provide market and customer diligence. The engagement focused on assessing:

• The quality and uniqueness of the Company’s capabilities relative to competitors;
• Depth of current customer relationships and customer support post reorganization; and
• The medium-term revenue outlook based on extant customer’s purchase expectations.

The transaction closed in October 2007.