Commercial Due Diligence on the target company, on behalf of Vantage Capital

Step Advisory performed a commercial due diligence on an established South African Business Process Outsourcing business, serving both local and international clients to assist with Vantage Capital’s investment decision.

Vantage Capital ranks among one of the largest independent mezzanine funders in Africa. Specialist services include providing capital to mid-sized companies across Africa through mezzanine debt, structured debt financing and equity investments. The focus is on specific sectors to support business growth, providing both financial support and strategic guidance.

Vantage Capital engaged Step to perform a commercial review of the target, a domestic leader with a proven track record in the industry, to unpack the commercial viability of the investment.

CLIENT

Duration

5 weeks

INDUSTRY

Business Process Outsourcing (BPO)

Step worked closely with the deal team to understand the investment thesis and, for Vantage Capital, the commercial focus areas deemed to inform their overall investment decision. To successfully perform and support the investment decision, Step executed specific commercial elements, which included a market assessment and trend analysis on the BPO industry, an assessment of the technology landscape within the BPO industry and how well the target is positioned in relation, a customer overview as well as an assessment of the local and international competitive landscape.

The report yielded key insights on commercial risks and opportunities. It offered the deal team independent, data-driven guidance to inform the investment decision and support their value creation strategies and intention to acquire an equity stake and offer funding.

The report issued by the Step team detailed the key commercial risks and opportunities relevant to the target and the investment decision, as well as offering insights into the relevant market dynamics which would impact the investment decision. This provided the deal team with objective strategic insights, backed by robust market and business analysis, to inform the investment decision and highlight key areas that would require focus as part of the business’s future value creation planning.

“Step Advisory provided invaluable insights to the Vantage team over the course of our Due Diligence engagement, helping the deal team to better comprehend the commercial risks and opportunities present within an ever-evolving BPO environment in South Africa. The advice provided ultimately supported Vantage’s investment decision

Roshal Ramdenee, Associate Partner – Vantage Capital