Client: Large European Telecoms Operator
Service: Commercial Due Diligence, M&A Intelligence
Geography: United Kingdom
Problem & Objective
Our client had identified a small UK telecoms company with an innovative VOIP proposition that it was interested in acquiring. It had done an online search which had not uncovered much information about the company, but a press article hinted that one of the target’s owners had a chequered past. Intelligentsia was asked to investigate the company and its owners in more depth.
Research Challenge
The research target was a small privately owned company about which there was limited published information. Also the problem owner was secretive and had tried to wipe his history from the internet.
The Resolution
Intelligentsia carried out investigative desk research. This unearthed county court judgements against the owner and crucially that the company’s Managing Director had a previous conviction for fraud.
Meanwhile our field researchers were speaking to the firm’s staff, customers and suppliers. A negative picture emerged of unhappy customers and suppliers, disputes and threats of litigation, and low staff morale.
The Result
Intelligentsia’s Due Diligence Report on the target contained multiple red flags, an assessment that the acquisition would be high risk, and a recommendation that it should be dropped. Our client agreed with Intelligentsia’s assessment, terminated the acquisition process, saving at least £5 million and potentially a lot of headaches in the process.
