Our client, based in France, contacted Skan1 following a tempting offer to buy one of his companies by another American “serial entrepreneur”. The offer is very attractive, to say the least.
Mission’s context :
Founder of a digital marketing start-up, our client was contacted by a businessman who was clearly well established in California’s Silicon Valley and wished to acquire this company whose activity was related, not to say complementary, to one of his own.
While he was not thinking of selling at this stage, which was still too “early stage” according to him, the spontaneous nature of the approach, the amount of the offer (very high in relation to the level of activity) and the highly visible and “successful” profile of the potential buyer was likely to make him change his mind.
But isn’t that too good? Some of this person’s achievements are so impressive that it raises doubts in our client. Apart from what he himself puts forward, and he is a good salesman, there seems to be little information available on this impeccable profile.
Result of our investigations :
At first glance, the American citizen’s public profile is without a hitch: a successful personal website, a well-organized presence on social networks highlighting his career path and professional successes. An outstanding “deal maker”!
However, a more detailed analysis based on our SKAN-3X benchmark reveals some flaws. Indeed, if most of the elements put forward concerning his business and professional activities seem to be true, many are approximate or exaggerated… Or even non-existent. An aborted negotiation cannot be considered as a “deal”, a short consulting mission in a company, even a prestigious one, cannot claim to last a decade, a symbolic participation in love-money does not justify the title of co-founder and a place in the final is not a title in tennis: a cosmetic of embellishments as many warning signals…
Benefit for the client :
Our client’s doubts following his first telephone conversation are therefore confirmed. The lengthening response time regarding the availability of funds for the acquisition also points in this direction.
The interlocutor, as enterprising as he was, and despite an attractive offer, did not give the necessary guarantees of seriousness to prolong the discussion. Our client gives up the operation, his start-up will continue its development before a later sale, when he decides to do so.
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
Want to know more about our offer :
- Our M&A solution
- The SKAN-3X service in detail
- Our other examples of “M&A” missions“
Want to order ? :
- Order a SKAN-Check evaluation directly online
- Request a customized SKAN-INVESTIGATION assessment