Lower Middle-Market Niche Manufacturing
Fabricator of Foam Products
An investor group was considering an acquisition of Keystone Foam, a US-based fabricator of various foam products used in the medical, packaging, furniture, bedding, and other industries.
The investor group engaged Ameridan to provide due-diligence of the markets, customers, and competitors for customized foam solutions using conventional polyurethane, polyethylene, and viscoelastic materials. This work included:
- An analysis of the markets for custom foam with a focus on demand drivers by segment, historical growth rates, medium term growth prospects, and cyclicality of demand;
- A review of industry trends, including issues surrounding potential changes in technological/regulatory requirements, or raw materials;
- An evaluation of the customer base regarding overall value proposition, service levels, product quality, technical knowledge, customer service, and the associated risks of disintermediation;
- An assessment of the competitive landscape, including market share, uniqueness of the firm’s fabrication capabilities, and key competitive strengths & weaknesses.