Alerta Marketing Intelligence

EMS company search and valuation

Problem: An American equity investment firm was interested in identifying successful EMS companies that had a consistent history of profit and a defensible market segment. The firm wanted to put together a syndicate of companies that could dominate a low-to-medium volume and high complexity product assembly market niche within the industrial, medical and transportation market segments. So, to better accelerate their time to market, the company retained Alerta Marketing Intelligence (AMI) and New Venture Research (NVR) to provide intelligence, guidance and introductions to the most eligible companies that would make the best acquisition candidates.

Solution: AMI / NVR provided a macro-economic analysis of the EMS industry and the leading suppliers, profiling their profitability by industry segment, geography and customer product application. Because of the many years of experience AMI / NVR have had in the EMS sector, CEO-level access was arranged and introductions were made to a wide variety of eligible companies. AMI / NVR assisted the client in the market valuation of the selected firms, assessing their future potential and position in the marketplace, and making recommendations for the best companies to be successful.

Selection of low-cost EMS partner

Problem: A European based OEM was interested in identifying a low-cost electronics manufacturing partner in Asia, Eastern Europe and Mexico. In order to remain competitive, the company needed the manufacturing capabilities of EMS/ODM partners and suppliers in each region to maintain its competitive position in the end use appliance markets. The objective of the project was to identify the best potential manufacturer in each geographic region for eligible partnership.

Solution: AMI / NVR provided a summary of the entire EMS industry on a geographic basis which included profiling all the leading suppliers by region. The client had specific performance and capability requirements by product that needed to be matched with the available supply market and so a matrix analysis was provided for each region. AMI / NVR ultimately made recommendations and introductions to the leading candidates, and assisted the client in developing selection criteria for the best partner based on its internal needs, capabilities and outsourcing requirements.

EMS company wants to be acquired

Problem: A contract manufacturer was interested in selling its business to a larger firm but was unfamiliar with how to identify a suitable buyer that would appreciate its strengths, customers and assets. The company had developed a specific niche in the high-mix, low-volume board assembly business and was very experienced in complex test procedures for advanced memory components and other ICs. The customer base was expanding rapidly but the company had not yet realized the growth in business that would have to be accomplished over the next two years.

Solution: AMI / NVR developed a search process which profiled and screened a set of aggressive potential acquirers, and then made the initial inquiries and introductions on the seller’s behalf. AMI / NVR successfully positioned the client before a smaller set of qualified candidates who were interested in the customer set and technical capabilities and assisted in-depth negotiations to evaluate the core business and strategic assets of the seller. A bidding situation resulted among multiple buyers which allowed the seller to realize the best price for its business and resulted in a successful merger for both parties.

SMT company requires collaborative new business development

Problem: A leading European provider of Surface Mount Technology was interested to expand its sales and market share in Asia, at a time when a global financial crisis had frustrated an IPO. The situation was complicated by the fact that nearly 70% of all shipments in the industry were supplied by Japanese rivals, which jointly developed technology roadmaps, planned product realization and created self-fulfilling prophecies in the market. The client urgently needed strategic guidance to align its product creation processes with dynamic business cycles and market realities to prevent being victimized during the next round of industry consolidation.

Solution: AMI / NVR performed an elaborate market assessment of the global SMT equipment industry and the emerging modules business, focusing on customers and competitors, applications and segments. On the basis of a brand image survey, conducted among OEMs, ODMs and EMS providers, it was found that a large proportion of the equipment supplies were in fact captive sales to Japanese and other Asian conglomerates. AMI / NVR helped connect the client to the Japanese JISSO community to enhance its understanding of customer requirements, refine its technology roadmap and prepare a strategy to address its business challenges in Asia.

Development bank seeks to build consortium to promote open innovation

Problem: A Dutch development bank was interested in composing a consortium of high tech companies and developing an open innovation project, focusing on inkjet technology, embedded systems and nanotechnology. The bank envisioned to create a growing and durable pool of expertise among companies operating in different parts of the value chain in order to speed up the R&D cycle and strengthen commercialization trajectories. Innovations were expected to become visible in terms of regional GNP, contribute to exports and employment, and reinforce the position of the Netherlands on the European Innovation Scoreboard.

Solution: AMI / NVR helped develop an alliance strategy and aligned parties to the cause of co-creation to develop a set of disruptive technologies and volume applications, while guarding the IPR of each  committed to invest. To encourage their participation, AMI / NVR captured 35% of the subsidy funds administered by the Ministry of Economics and designated for projects in the area of High Tech Systems. Working with financiers and governments, AMI / NVR contributed to the formation of a groundbreaking consortium between high tech companies and the development of open innovation projects in the Netherlands.