Devonshire has substantial experience conducting business evaluations carried out as part of acquisition searches and due diligence assignments. An evaluation of a business usually involves:

• Determining the structural attractiveness of the industry or industries in which a firm competes,
• Evaluating the company's competitive/strategic position within the industry,
• Evaluating the strengths and weaknesses of the company from a financial, operating and managerial perspective; and
• Projecting financial performance.

We first determine the attractiveness of the industry in which the company is operating. We examine industry structure and economics, analyze the competitive forces that are operating (i.e., firm-to-firm rivalry, the bargaining position of suppliers, the bargaining position of buyers, rivalry with substitute products, threat of new entrants), and forecast the evolution of the industry.

We next assess the company's competitive and strategic position within the industry, the source and sustainability of any competitive advantage, and ways in which competitive advantage might be improved. We profile key competitors, predict the likely behavior of these competitors, and evaluate the company's position vis-à-vis competition. The firm's competitive position in its industry is a major determinant of its ability to sustain long-term profitability.

As part of this process, we develop an in-depth understanding of the business including consideration and analysis of market size, growth and segmentation, customer preferences and buying behavior, channels of distribution, competitor strengths and weaknesses, underlying and emerging technologies, regulatory developments, keys to business success, and appropriateness of current company strategy.

Finally, we conduct a thorough on-site analysis of the company based on a review of corporate documents and financials reports and interviews with key management personnel. This evaluation includes an assessment of the financial condition of the company and an evaluation of the operations of the company and the adequacy of the management team.