Services & Programs

Operational Due Diligence

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.

PRE-ACQUISITION INTELLIGENCE

LoBue's proven process:
  1. Background Discussion with Acquirer on "Target"
    • Overview of acquisition objective, target sensitivities, background financials
  2. High level layout of proposed contact process, timing, and outcomes
    • Seamless Integration of LoBue Process with Due Diligence team
  3. Onsite Review
    • Walk-thru of "Target" operations by LoBue principles
  4. Recommendations for Action
    • 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 QUALIFICATIONS

  • 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.

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