Altman Solon performed a market study to support a Private Equity investor on the potential acquisition of a conversational AI platform provider, operating in a relatively nascent segment of the market. Given the early stage of the market, it was important to provide the client with a clear understanding of the market potential and the sustainability of the target’s competitive positioning.
Altman Solon conducted extensive market participant interviews of competitors, buyers, and system integrators to gain first-hand insight into the market dynamics and customer demand for conversational AI. We also created a clear overview of the solution landscape and the relevant market segmentation based on the current use cases and customers of the solution providers, as well as the specific market trends impacting the target’s business.; developed a detailed view of the key purchasing criteria of customers and resulting competitive threats; and combined top-down and bottom-up methodologies to measure the current and future market potential for the target’s existing product portfolio, as well as potential expansion opportunities across new use cases, verticals, and geographies.
The client gained a clear view on the current market size, competitive dynamics, and the future growth prospects of the target. This included a high-level risk assessment to understand potential for disruption, as well as an evaluation of potential exit opportunities, to help articulate the investment strategy.