Back of the napkin acquisition analysis often backfires on Private Equity or Bank Management Teams when it's too late to do anything about it. LoBue has developed and successfully delivered a unique Operational Due Diligence program for refining M & A decisions. Often the confidence of having a reliable integration opportunities analysis can mean the difference between a failed or successful acquisition offer. The LoBue process provides a detailed overview of integration risks and opportunities and an implementation plan with a guaranteed
timeline and savings for post acquisition consideration. More importantly this analysis provides reliable input to the Acquisition pricing decision.
Alternatively, LoBue has provided Sellers with insightful analysis for Business/Division divestitures that have improved the "sale" proposition.
LoBue's proven process:
- Background Discussion with Acquirer on "Target"
High level layout of proposed contact process, timing, and outcomes
- Overview of acquisition objective, target sensitivities, background financials
- Seamless Integration of LoBue Process with Due Diligence team
Recommendations for Action
- Walk-thru of "Target" operations by LoBue principles
- Near-term are defined as those items which can be pursued and deliver results within twelve months of closing with guaranteed implementation results
- Long-term are those opportunities that require new product/business thrusts where implementation cannot be accomplished within twelve months. These are usually prioritized by impact, time to implement, investment required and potential for success
- LoBue was commissioned to review a Data Processing Company for a Private Equity Firm who wanted to acquire a platform company for a Private Wealth Management start-up. LoBue due diligence uncovered serious sales and marketing deficiencies as well as a cost base that was far above industry norms. This input was instrumental in the "Target" being eliminated from consideration.
- LoBue was commissioned to represent a US-based Financial Services Company under attack from a hostile takeover. LoBue analysis of the Companies prospects and presentations to key shareholder groups eliminated the threat and allowed for the orderly sale two years later at over 200% of hostile offer.
- LoBue was requested to perform a due diligence on a division of a major processing company which was a drag on overall company performance. A sale above book price was deemed impossible. LoBue's analysis produced a plan for repositioning the business with a reduced cost base. The Business was successfully sold for 180% of book price using this plan as a marketing tool.
- LoBue was commissioned to perform due diligence on a E-Commerce Lending Business by a leading US Bank. LoBue due diligence supported the successful acquisition. Subsequently LoBue implemented a new strategy for the Division which led to a successful resale at 300% of original investment.