Due diligence research To buy, or not to buy?

The situation
This publishing conglomerate expanded through acquisition. In the mid-90s, they acquired over a half dozen properties. And, for each property that they evaluated for acquisition, they turned to O’Donnell & Associates to help them with their critical decisions. Is Company A telling us the truth about its levels of customer satisfaction? Why aren’t the biggest customers in the market buying from Company B? Can we integrate the sales force of Company C into our sales organization, or is their sales force intrinsic to the brand?

The process
Time is of the essence in due diligence research. Clients have little time to make important decisions. O’Donnell & Associates mobilized its extensive team and got on the phone, conducting in-depth interviews and phone surveys with customers and potential customers of these companies. The interviews were completely confidential, and they always yielded answers to the critical acquisition question.

The results
Based on our research, our client made a number of successful acquisitions. And, they avoided a few that would not have worked out. For example, we found out why the 2-3 big players in Company B’s market didn’t purchase their software product: these companies had their own home-grown programs. However, as the market shifted to Web delivery, an opportunity would arise for Company B. This made it a strong acquisition. On the other hand, we found that Company C’s sales force was integral to the company’s success and could not be easily integrated into our client’s larger sales force. Our client did not purchase the company; it was acquired by another big publisher. And, Company C had lost considerable market share.

Our client found that stopping to talk to some customers is a smart step in the acquisition process. And, O’Donnell & Associates is always on hand to provide quick, high-quality service.