Challenge

A company listed on the Warsaw Stock Exchange, in connection with significant over-liquidity, was seeking new acquisition targets. As part of its internal evaluation, it began work on the takeover of an active entity in the Polish bookmaking market. As an investor from outside the industry, it needed help in assessing the company’s condition, and support during the transaction.

The Solution

Gaming 5.0 initiated contact between both companies which led to talks. Preliminary due diligence was carried out to determine the market position of the potential acquisition target and to identify the key factors affecting its valuation. We also prepared an analysis of the legal situation and the impact of possible changes on the entity to be acquired. On the basis of the analyses and market knowledge, the takeover bid was evaluated.

We provided a recommendation regarding further steps in the transaction process and prepared a list of factors reducing the valuation. A comprehensive risk analysis was also presented and key scenarios were identified.