About Us > Our Due Diligence Philosophy

Our Due Diligence Philosophy

We often begin studying a company after referral from a shareholder, analyst or banker who possesses an interest in a company that may meet our acquisition criteria.

Once a company is brought to our attention, we begin our first phase of due diligence. We review the company's public filings, analyst reports and trade publications, and analyze the company's products and services. Then, if the company appears to meet our acquisition criteria, we consult leading operators, analysts and investment bankers to further explore the company to ensure it meets our criteria.

Our due diligence serves three important purposes:

1. To enable us to determine whether a company presents a compelling and sustainable competitive advantage with a core of talented senior management capable of and committed to achieving the company's full potential;
2. To enable us to determine the principal problems we must solve to achieve the company's potential;
3. To enable us to establish appropriate pricing for our bid and a financial structure to minimize our time to close.

Once we complete our due diligence and confirm a company meets our acquisition criteria, we make a bid to the company's directors. We believe if a company meets our acquisition criteria, its directors can best maximize shareholder value through a sale of the company. After we present our bid, we are prepared to either engage in a private negotiation with the company's directors or an investment bank led auction to work toward a transaction.

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