Step assisted the City Logistics and Clearwater Capital Investment team with a Financial Due Diligence and Commercial Due Diligence focused on Fastway
In order to make an informed investment decision, with a clear understanding of the market and potential value to be realised, City Logistics and Clearwater Capital required assistance with conducting both a detailed Financial and targeted Commercial Due Diligence on the proposed investment target Fastway Couriers.
Step worked closely with both the City and Clearwater teams to understand the investment thesis and key value drivers for the transaction. A financial and commercial due diligence was then executed by the Step team.
As part of the Commercial Due Diligence process, Step conducted a targeted review of the South African retail e-commerce market as well as the small parcel logistics market, including sizing the relevant areas in which the target operated, as well as identifying current and future trends which would promote growth in the business. Step also provided an analysis of the competitive environment by understanding the key players within the value chain and Fastway’s relative positioning (strengths and weaknesses) in relation to its competitors.
In addition to this, Step conducted a detailed analysis of the franchise model operated by the target as well as unpacking the value proposition offered to the market. Step performed detailed customer analysis and a footprint analysis to understand Fastway’s reach across the country. As part of the Financial Due Diligence, the Step team focused on the analysis of the Financial Statements and key value drivers with a focus on extracting key insights, risks and opportunities associated with the Investment Opportunity.
The report by the Step team detailed the key financial and commercial risks and opportunities relevant to Fastway, showing the potential hurdles which may hinder the value derived from the transaction as well as the areas where further value creation may be possible. This provided the deal team with independent and objective strategic insights, backed by rigorous data and market analysis, to inform the investment decision and their value creation planning.