• Acquisition Due Diligence
  • Project Management of a Business Acquisition

Client: Industrial Products Manufacturer.

Project Objective: Ensuring target business is as per prospectus.

Project Summary: 

  • We managed the data collection for the due diligence, identified & assessed project risks and facilitated the project governance
  • We built relationships with key stakeholders for both buyer and seller
  • At a detailed level we project managed the due diligence to a successful business acquisition

The Challenges:             

  • Key stakeholders in the buyer were busy with their day-to-day work and other projects
  • The key seller stakeholder had a terminal illness
  • Business case for the seller left little room for negotiation

Solutions:

  • Facilitated regular governance meetings with key stakeholders
  • Created and completed detailed Due Diligence checklist
  • Build and manage detailed project plan covering all functional areas including Finance, Legal, Property, Sales, IP, Human Resources, Management, Reporting and Operations.
  • Pragmatically negotiated with both buyer and seller keeping focus on “bigger picture”
  • Managed acquisition contracts between lawyers

Outcomes:

  • Business acquisition was successfully completed within timeframe
  • Both buyer and seller thought the outcome was a genuine win:win
  • All acquisition risks were successfully mitigated including no loss of clients
  • Financial return achieved six months post acquisition was significantly above plan

Client: Industrial Products Supplier

Project Objective: Project Management of a Business Acquisition

Project Summary: EPRAKT’s scope of work was to project manage a business acquisition to successful completion on behalf of the purchaser

The Challenges:                     

  • Seller had a relatively low level of business acumen and experience regarding acquisitions
  • Trust was initially low between seller and buyer due to legacy issues
  • Key purchaser (inconsistent: term buyer used elsewhere her and in other case studies) managers had to take leave of absence during project
  • The seller was not initially aware that they had overlooked key statutory requirements
  • The potential deal had leaked very early, causing employee and competitive risks

Solutions:

  • Developed, updated and published formal project plan covering all areas including Finance, Human Resources, Sales and marketing, IT, Property, Operations and Legal.
  • Identified project risks and built risk mitigation into overall project
  • Built trust with both sides by listening and directly addressing valid concerns and fears
  • Managed critical milestones on both sides to ensure that the action plan timeframes didn’t slip
  • Suggested compromise solutions when negotiation difficulties arose
  • Located and employed expert niche manager as an EPRAKT sub-contractor (do we want to say this in this way?) to quantify and address significant product stock issue (is this about valuation? If so,  it is an insurance cover issue)

Outcomes:

  • Business acquisition was completed on time and at a cost lower than budget
  • Seller and purchaser (refer above) were extremely happy with the outcome and the process
  • Potential “deal-breaking” risks were proactively addressed to the satisfaction of both parties
  • Protocols and procedures were improved significantly during project
  • All key staff were retained post acquisition
  • Aggressive competitor approaches to seller’s clients were actioned in line with project plan, leading to retention of all key clients and some acquisition of new key clients

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