case study
Uncovering hidden fragmentation in a niche SaaS market to inform acquisition strategy
Marnik Willems
A group of private investors was considering the acquisition of a SaaS provider operating in a niche segment with specific operational and regulatory characteristics. BrightWolves was engaged to conduct a Commercial Due Diligence to assess market potential, product fit, and strategic risks.
Challenge
The investors expected a niche market with few established players and strong potential for growth through product focus and execution. However, limited public data, regional regulatory differences, and limited market transparency made it challenging to validate this hypothesis and quantify the realistic upside.
What seemed like a niche market at first quickly revealed layers of hidden fragmentation, reshaping the entire investment case.
Approach
BrightWolves led a structured Commercial Due Diligence built around five key levers:
Market deep-dive: Analysed sector dynamics, digitisation levels, and growth drivers across Western Europe and North America.
Regulatory mapping: Reviewed environmental, privacy, and operational regulations shaping software needs across regions.
Extensive outreach: Contacted over 100 market stakeholders and secured 45+ in-depth interviews to gather direct insights on buying behaviour, unmet needs, and adoption barriers.
Competitive scan: Benchmarked 20+ regional and international SaaS players, identifying key differentiators, limitations, and customer satisfaction levels.
Scenario modelling: Built a bottom-up growth model based on addressable market size, realistic pricing, and conversion rates.
Findings from all five areas were brought together to assess the target’s market positioning and support a grounded view on its commercial potential.
Impact
Recalibrated the assumption of low competitive intensity and clarified regional fragmentation
Provided investors with a grounded, data-backed perspective on product-market fit, adoption risk, and commercial upside
Supported a well-informed investment decision with quantified risk factors and levers for value creation
Together, these insights equipped the investment team with a robust foundation for decision-making.
Summary
A group of private investors engaged BrightWolves to conduct a Commercial Due Diligence on a niche SaaS provider operating in a fragmented and opaque market.
Initial expectations of limited competition were challenged by regulatory complexity, scarce public data, and unclear adoption dynamics.
We combined deep market analysis, stakeholder outreach, and scenario modelling to uncover hidden fragmentation and assess product-market fit.
The resulting insights enabled a data-backed investment decision, clarifying risk, upside, and levers for future value creation.