Strategic due diligence David Goldstein President, Mekko Graphics david@mekkographics.com

Introduction Mekko Graphics is used by over 75% of the top 25 private equity firms as identified by Private Equity International It plays a critical role in all stages of the strategic due diligence process: Market analysis Competitive positioning Customer analysis Company analysis Mekko Graphics supports chart types and features that are valuable for due diligence and not found in PowerPoint or Excel: Marimekko chart Bar Mekko chart Cascade, waterfall or bridge chart Data rows, data columns and CAGR columns that align with the chart Growth lines and comparison lines Mekko Graphics has over 15 years experience satisfying the charting needs of: Strategy consultants Private equity firms Strategy and marketing professionals at Fortune 500 companies

Market Analysis Use a Marimekko chart to map the market by industry vertical, identifying an unpenetrated market opportunity.

Market Analysis A Marimekko chart can also map the market by company size and industry vertical

Use an area chart with a CAGR column to track market trends over time Market Analysis Use an area chart with a CAGR column to track market trends over time 4.7% Total

Use a 100% stacked bar to identify market opportunities. Market Analysis Use a 100% stacked bar to identify market opportunities.

Competitive Positioning This Marimekko chart presents market share by competitor and industry vertical. We use a data row to show overall competitor revenue.

Competitive Positioning The Bar Mekko shows competitor cost analysis. We use color coding to differentiate countries and average lines to highlight key costs. Country Current Marginal Cost: ~$80 Previous Marginal Cost: ~$50

Competitive Positioning The bubble chart contrasts earning, market share and revenue for each competitor. The competitors in the shaded area are niche players with relatively high earnings.

Customer Analysis This Marimekko chart presents sales by brand and channel. You can spot opportunities for growing a specific brand in a sales channel.

This Marimekko chart presents sales by customer and region. Customer Analysis This Marimekko chart presents sales by customer and region.

Customer Analysis A Bar Mekko is an effective way of summarizing a company’s overall profitability by breaking out its components, revenue and contribution margin in this case

Customer Analysis A Bubble chart can be used to overlay two additional dimensions of information to the overall profitability. Medical and Air, Land & Water Transportation segments display outsized margins vs. what would be expected for customers of that size R² = 0.68

Use a cascade chart to track customer gains and losses. Customer Analysis Use a cascade chart to track customer gains and losses.

Company Analysis Add a growth line and a CAGR column to a stacked bar chart to track sales by product for the last four years.

Use a Marimekko chart to break out costs by department. Company Analysis Use a Marimekko chart to break out costs by department.

Company Analysis The profitability of Plant 1 is higher than Plant 2 even though the automotive segment is weighing it down. Plant 1 Plant 2 Plant 1 Profitability: 70% Plant 2 Profitability: 62% Contribution Margin Contribution Margin By using two Bar Mekkos side by side, the profitability across two divisions of a company can be shown while retaining the relative size of each.

Company Analysis The decrease in profitability among automotive customers was more than offset by the increases in industrial machinery, medical, and all others between 2011-2012.

Company Analysis You can also use a cascade to estimate the overall change in equity value for the investment.

Learn More To learn more about creating persuasive charts, download the free Mastering Chart Selection Guide, which includes a 30-day trial of the Mekko Graphics software. Questions or Comments? Join us on Facebook or Twitter and say hello!