
Our client’s growth strategy weighed heavily on acquiring competitors geographically, expanding city-by-city and centralizing operations to gain efficiency and maximize profit. Because the business relies on attentive customer service, it was important to the client when evaluating new acquisition targets to go beyond typical financial and legal due diligence, and to research every stage of operations to mitigate acquisition risk.
We worked closely with the client to help evaluate a key acquisition. This included interviews with customers and industry insiders, assessment of key personnel and management effectiveness, and research into operations. Due diligence of this nature required a hands-on approach, with an emphasis on both field investigation and face-to-face interviews.
Our findings determined the target’s revenue relied primarily on two clients. Exploring those relationships revealed exemplary customer service by one individual in the target’s support department was instrumental in the retention of these clients. Normally our client would consolidate support to reduce costs, but this revelation identified the individual as a critical factor in the acquisition, and she was kept aboard and promoted to Director of Marketing.