A small investment in deep due diligence from a professional PI firm like Pickering Sullivan can save losses, headache and embarrassment from later discovery of personal or professional issues with key individuals acquired through mergers or acquisitions.
considering a merger or acquisition? find out what the target company and its officers aren’t telling you. a single piece of non-disclosed information could make the difference between a deal succeeding or failing.
One of our technology clients entered a non-binding LOI to purchase a startup. They engaged Pickering Sullivan to learn more about the backgrounds of the four founders as part of their standard due diligence process.
In addition to standard education, employment and criminal background searches, we also conducted patent application searches on all four, given the highly technical nature of the industry.
We discovered that one of the founders had recently applied for a trademark on IP that appeared very similar to IP developed by the company being acquired. In addition, the individual had incorporated a new company under a family member’s name that appeared to be competitive to company he was selling. None of this had been disclosed by the founders to the acquirer.
As a result, our client withdrew their bid, potentially saving millions in lawsuits and a failed acquisition.
Non-disclosed information is one of the most frequently cited reasons for why deals fail. Talk to us about how we can protect your company as a routine part of M&A procedure.