Commercial Due Diligence for a potential investment in a leading integrated logistics service provider in Malaysia

Situation

Our client was evaluating a potential investment into a local land-logistics service provider

Given this, they wanted an in-depth understanding of the dynamics and prospects of the logistics market in Malaysia, and an assessment of the Target’s business which would ultimately affect their return on investment 

Approach

• Provided an in-depth analysis on Malaysia’s land-logistics market across the value chain from haulage, freight forwarding, inland distribution, through to warehousing, specialised transportation and project logistics
• Assessed key market demand and supply drivers, market sizing, macro trends and market opportunities
• Identified and assessed sustainability of the business’ competitive advantages
• Reviewed the Target’s historical financial performance against its business plan and future growth strategy
• Performed an outturn analysis taking into account the Target’s current and historical achievements and future strategic plans and ventures

Impact

• From the Integrated Commercial, Financial and Tax Due Diligence, we delivered deep and holistic insights and views on the Target
• Estimated the industry growth rates of various verticals within the Target’s Logistics business
• Discussions with market and industry players (e.g. industry associations, key customers) provided on-the-ground views and validation of developments on the ground, as well as emerging trends that could impact the Target’s business outlook and strategy going forward

Market size of the logistics industry by key segments

Key success factors for logistics players in Malaysia