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A
wise investor seeks information before he
invests.
So many
people have neither the time nor the money to do it right the first time.
Some do not even have the time or the money to do it right the second
time. Those that survive have both the time AND the money to do it right
the third time. Learning this way can be very expensive.
There should
be no surprises. Each situation is unique. Due diligence is often thought
of as crunching a series of numbers, based on certain assumptions. Few
challenge the assumptions. History shows, for example, that many takeovers
fail, not on the numbers, but on such things as a failure to meld
different corporate cultures, or in the wrong assumptions about the market
or other conditions.
We are
information retrieval specialists. We use little known sources, great imagination, and frankly, lots
and lots of down and dirty hard work to gather the information required.
We CAN get the information. Often it is information to test the
assumptions.
Want to know
how many boxes of widgets your competitor is shipping? Boxes may be
counted individually as they cross the dock, using satellite imagery. It
is expensive, but possible. Usually there are better ways.
In one case,
where a takeover of a competitor was being contemplated, and before the
approach, a good estimate of the tonnage being shipped was needed. What
later was found to be an astoundingly accurate estimate was obtained by
simply measuring the amount of rust on a railway track spur leading to the
plant.
Assignment motivations
While each
assignment is different, usually the motivation behind our engagement
falls into seven broad categories.
*seeking
confirmation of assumptions about a rough or finished plan already in
existence.
Our
most common assignment. For example, a company wants to expand to the
North American market. How best to attack the market? What are the
government regulations, cultural differences, etc? Probably it happens,
but never in our experience does the plan NOT change. Click here for example. IF you think you might have a
problem, contact us.
*seeking
data to implement an idea.
Will
a new product fly? Is it better to Start from scratch, or to buy another
company, or license? Why? How might it be best implemented? Contact
us before you spend fortunes in development.
*seeking to
confirm/verify some data already in hand.
Commonly
used to check on some kind of story before further investment of time or
money. Everything from background of principals, to market conditions and
regulations, to reasonableness of balance sheets. If I lend Joe money,
will I get it back? Due diligence would also fall under this heading. Contact us.
*seeking an
idea within some parameters.
These
assignments are often the most exciting, and the most difficult.
Essentially they are someone saying, “I have a problem. Can you solve
it?” (Often because they do not have the time to solve it.) It is also
where one of our strengths comes into play. Imaginative thinking. If we
cannot go over this particular mountain, find a way around or through it. If you want to sell
iceboxes to Eskimos: Iceboxes may not only be used to keep the cold in,
they can also be used to keep the cold out. Contact
us, if you have a problem you have been putting on the back
burner.
*seeking
background/cultural/business practice/marketplace information.
In
some ways this is not unlike “confirming data in hand” above. To
illustrate the difference, we use the example of a new
CEO, coming to a major competitor. What are
his strengths and weaknesses, and how can we use this information to our
best advantage? It is often used where the company is entering a new
market, particularly where the differences are magnified by another
language. It is our experience that it is most NEEDED where a company
enters a foreign country of the same language. If you are thinking of
investing in North America, contact
us.
*seeking to
obtain critical data not normally available.
99%
of information is available, using a bit of imagination. Refer to the
railway spur measurement of rust to determine tonnage shipped above.
‘Normally available’, in this case, refers to the average citizen, and
their ability to retrieve, assemble, and analyze data. If you need
information, contact us.
*seeking new
ideas.
Not
only are idea inventions possible, but, often ideas have been sitting
around unrecognized for lengthy periods of time. The BIC pen, with its
revolutionary new ball, sat around for years, simply because the common
perception was that ball pens did not work, and nobody would look at it.
We have the imagination, or can find it, for the invention of new ideas,
and the research capability to find existing ideas. It is
possible to create ideas on demand. If you have an ongoing or specific
need for new ideas, contact us.
Thanks for visiting. Please add us to your
bookmark list, and call
again
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