WHY MOST ACQUISITIONS FAIL 

According to a recent study published by Business Week,

83% OF ACQUISITIONS FAIL TO RETURN SHAREHOLDER VALUE!

The three primary reasons for failure are cited as:

  • OVERPAYMENT

  • CULTURE

  • MANAGEMENT

 GOVERNANCE AND CORPORATE RESPONSIBILITY 

In the wake of the explosion of corporate disclosures of irregularities and shareholder value destruction, it is the responsibility of any board of directors, management team,  private equity investor , or  venture capitalist to demonstrate to their investors that they have taken reasonable steps to assess the likelihood a potential investment will increase shareholder value.

While no single model or assessment can be a certain predictor of the success of a merger or acquisition prospectively, a second opinion from from an objective party with no conflict of interests provides an additional point of reference a management team can use in their ultimate decision process.

 

 RUDDER CAPITAL'S SECOND OPINION SERVICE 

Rudder Capital's Second Opinion service is based on its proprietary M&A Assessment of Probability of Success (MAAPS™) models. 

In order to evaluate the likelihood that your company's proposed transaction will be successful, the Rudder Capital MAAPS™ model uses proprietary benchmarks, tools, and information to:

  • Assess the financial metrics of the proposed purchase;
  • Assess cultural differences between your organization and the target company;
  • Assess the ability of your management team and the target's management team to lead the company.

Rudder Capital's professionals have evaluated, led, and managed over 100 acquisitions as operating managers, using the same principles now being offered to you.  They are uniquely qualified to add value to your acquisition due diligence.

The Rudder Capital Second Opinion Process 

Rudder Capital will collect information about the target company from available sources and conduct face-to-face interviews with both the buyer and seller.  The information is then evaluated based on the Rudder Capital  MAAPS™  proprietary  models. 

In addition to an overall assessment of the likelihood of success of a potential transaction, your will be provided with metrics and benchmarks against which to track and measure the ongoing  success of the transaction.

The second-opinion service is designed to provide an additional data point and stand alongside the due diligence work performed internally and by your other professional service providers.  It is not meant to be a substitute to thorough and responsible due diligence and evaluation to be performed by your management team and its advisors.

Our engagements vary in length and price depending on the scope of services provided and the magnitude of the proposed transaction. 

For more information about Rudder Capital Second Opinion service, please contact us at info@ruddercapital.com.

 

   

 

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