LoBue: Real Resources: Success Story: Due DILIGENCE

SUCCESS STORY: DUE DILIGENCE

CLIENT:	Investment Group
DIVISION:	Headquarters
CONTACT:	Chairman
MAJOR FUNCTIONS:	All operations for due diligence of technology company acquisition

SITUATION
The client was interested in the purchase of a technology company in Europe. In addition to the financial due diligence required, the client desired an assessment of the operations in determining a fair asking price.

LOBUE RECOMMENDATIONS
In making a recommendation, LoBue examined the following areas:

Organization and staffing
Staff skills and management process
Operations and data center
Products and systems
Clients and revenues
Contracts, licenses, and fee arrangements
Services and service level
Infrastructure logistics

LoBue recommended that assuming an attractive price, the operations should be considered for acquisition. Additional recommendations were made for strengthening management; and specific risks and opportunities that were apparent in the business were identified.

REAL RESULTS
LoBue provided extensive business analysis outlining:

Market position and current and future market potential
The quality of products and services
Internal operations and management process

The acquisition was recommended within an acceptable price range. Based on the demands of the acquisition candidate, the client declined the purchase transaction, but is forming alternative relationships and joint ventures with the company.