Due Diligence ahead of entering the lighting wholesale sector
maconda News August 2014
Luminaire, lamp, light source—who is not confused by that? For the second time in a short period, the maconda team was active in the lighting sector, including projects to increase operational earnings as well as in initiating investments. Most recently, with our “Commercial Transaction Services”—services relating to the sale of a company—we shed light on the multifaceted subject of trading in architectural lighting.
Founded in 2000, Lichtbasis GmbH is one of Europe’s leading lighting wholesalers. The company distributes high-quality light sources and luminaires for professional applications, for example for retail stores and the hospitality industry. A broad, diversified customer base benefits from comprehensive lighting expertise, high delivery capability, and lighting design services. For 2014, the company expects revenue of around €65 million.
The maconda team supported the Frankfurt-based private equity firm Finatem with a Commercial Due Diligence. In addition to analysing the product range, customer and supplier structure, a key objective was to identify the current drivers of the complex and highly dynamic lighting market and to assess its further development. This is being driven decisively by LED technology, which continues to gain ground at the expense of conventional lighting technology and is expected to bring about a number of market changes across all stages of the value chain. These include, among other things, increased energy efficiency and light quality as well as new possibilities in lighting design. Longer service life, short development cycles, generally falling prices alongside improved performance, and increasing complexity are presenting all market participants with new challenges. In particular, product and planning expertise in lighting, as well as strong advisory capabilities, will become important competitive advantages.
To better understand the high market dynamics and the relevance of various LED trends, we held targeted discussions with selected experts and market participants from our established network. We also drew on the many years of know-how of lighting experts in our core team, enabling us to provide our client with a comprehensive view of the complex market and Lichtbasis’ specific business.
Of course, we are also available to you as a competent and trusted partner—whether in wholesale and retail or in other industries—for Commercial Due Diligence (also on the sell side), value creation projects, business field development, international expansion, and strategic and operational restructuring.
Please contact us at any time if you require expertise in this area. We will be pleased to assist you.