The electronics industry has long been a dynamic one, but never as dynamic as it is today. Private equity investors now own some of the largest semiconductor companies and are pushing for improved efficiencies. Many, if not most, of the largest chip companies are making significant adjustments in their strategies. And, as usual, changes in technology—often driven by innovative start-ups—threaten to disrupt the status quo.
In this dynamic environment, industry executives and investors are faced with tough decisions. Should we continue to invest in this technology, or license something similar? Should we acquire this start-up or that competitor? Should we enter this new market? Making the right call can mean the difference between success and failure. And making the right call requires good information about the relevant technology, business, and market factors.
Savvy players have long relied on BDTI to provide them with the key information they need to make these hard decisions with confidence. Beyond its well-known benchmarks and in-depth technical analysis, BDTI has been tracking and analyzing semiconductor business, market, and technology trends for over 15 years. BDTI’s unique combination of hands-on technical expertise and big-picture perspective on the industry puts BDTI in an ideal position to provide insightful, independent, and accurate information when it matters the most.
For example, BDTI was commissioned by an investment firm to perform a thorough analysis of a spin-out company offering licensable processor cores and specialized tools. To help it decide whether or not to make a large investment in the spin-out, the investor asked BDTI to answer key questions, such as:
Are the company’s products and technology competitive for the targeted applications?
Are the company’s product and technology sufficiently complete and mature to be accepted by customers?
Is the company’s technology strategy sound?
Does the company have the resources needed to successfully execute its strategy?
To answer these questions with confidence, BDTI first examined the company’s products and marketing materials. Then, a team of BDTI senior analysts traveled to the company’s offices to interview management, engineering, marketing, sales, and support personnel. Next, BDTI interviewed the company’s existing and prospective customers. The BDTI team then performed a careful technical, business, and competitive analysis, and prepared a detailed report presenting its conclusions, along with supporting data and analysis. In the report BDTI indicated where the company was likely to succeed, and where the company faced important challenges—including technological, competitive, business, and organizational challenges.
For the investment firm that commissioned this study, BDTI’s analysis provided a knowledgeable, unbiased basis upon which to make an important investment decision, with more than $10 million at stake. BDTI’s in-depth knowledge of the relevant technology, markets, competitors, and trends complemented the investment firm’s in-house financial expertise, creating a clear picture of what was needed for the spin-out to succeed. In other, similar projects, BDTI’s analysis has been used to inform decisions about company acquisitions and make-vs.-buy decisions.
When you’re facing tough decisions, you need accurate, objective information. To learn how BDTI can provide you with the information you need to make important business decisions with confidence, please contact
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