Our client was a leading consumer gas, electricity and broadband price comparison website. In recent years, the company had also expanded into other areas of home services, including mobile phones, home and contents insurance. They were seeking backing for an MBO and engaged us to support this by providing a vendor-commissioned commercial due diligence report for potential investors, in order to support and inform their bids.
“They really got under the skin of the business to understand what was driving it and this produced lots of good insights into our market. CIL were able to demonstrate how they came to their findings and conclusions and I enjoyed working with the team.” – Management team, target company
We undertook four online consumer surveys, obtaining more than 3,000 responses and interviewed competitors, energy providers and other market participants. We also analysed our client’s revenue segmentation and pricing trends.
This was used to advise on:
- UK energy market trends, including pricing, competition and switching outlook.
- How the UK energy market is developing and the outlook for energy switching activity.
- The current market dynamics for the UK price comparison market for energy, both on- and off-line.
- The role of price comparison websites as perceived by product and service providers.
- The switching opportunity for other price comparison services, principally broadband and mobile phones.
- The target’s position in the markets it serves and an evaluation of its brand.
Our work demonstrated strong growth opportunities in the markets our client served and provided comfort as to the sustainability of the price comparison channel. Our client gained investment from a leading private equity firm and continues to grow strongly.