An LBO in France that could have gone wrong without the use of our SKAN-5X assessment solution, which is particularly well adapted to M&A practice.
Context of the mission :
This client is about to launch an LBO on a French company. In this context, the profile and skills of the target company’s manager are key elements.
Although confident, our client still wishes to ensure the total and lasting investment of the subject once the agreement will be signed.
Result of our investigation :
Our investigations excavate several elements showing that the personal investment of the manager and main shareholder of the LBO target is going downhill, even though the whole package is based on his personality and commitment. Indeed, it occurs that this manager is a horses’ lover and, in parallel to his known activities within the targeted company, is striking out a new project unknown to our client : he is building two hotel complexes abroad about the equestrian theme.
Benefit for the client:
Our findings allow our client to anticipate the defection of the manager and to renegotiate the terms of the deal to his advantage.
Reading suggestion(s) on SKAN1 Outlook :
- Les due diligences d’intégrité dans les process M&A
- Fusions-acquisitions : les vérifications relatives à la lutte anticorruption selon l’AFA
- Investir dans une start-up : pourquoi les due diligences sont cruciales
- Corruption : en Floride un rachat qui tourne au fiasco