IMAGINE. ENABLE. DO.

Private Equity Firm Empowered to Invest

Due Diligence For Mergers & Acquisitions

BACKGROUND:

A private equity firm based in Chicago was interested in purchasing a Fort Worth, Texas-based fabricator of traffic-related steel items, such as guardrails, light posts, and traffic sign structures. Sendero was engaged by the private equity firm to conduct due diligence activities and assess existing licensing and disaster recovery risks so the client could make a well-informed investment decision.

BUSINESS CHALLENGES:

The company targeted for acquisition did not have proper documentation of its IT systems and processes. While this was understandable given the targeted company’s core competency of fabrication, the client was challenged with obtaining the information needed to fully assess its investment risks.

SENDERO'S ROLE:

Sendero was engaged to leverage its technical and analytical expertise to conduct thorough due diligence. To this end, Sendero conducted interviews with employees to assess the environment and uncover material issues and business risks. Sendero also provided the client with a detailed report, including steps the client needed to follow to remediate discovered risks.

RESULTS:

Sendero alerted the client to material risks related to disaster recovery and other issues regarding software licensing. In addition to providing recommendations for remediation of the risks and issues, Sendero also noted additional informational findings that helped the client to gain a comprehensive understanding of the in-scope subject matter. Based on the information provided, the client assessed that the fabricator was a solid investment decision and acquired the company.