News & Research: Client Successes

Case Study: Acquisition Analysis for Target Company

ScottMadden assisted a large natural gas distribution company in analyzing an offer to be acquired by another company.

• uClient company received an unsolicited offer to merge with another gas LDC
• uClient wanted an evaluation of potential synergies and cultural fit
• uDecision time period was short and merger would have a significant impact on proposed organizational changes within the company

• uEvaluated formal terms and conditions of deal
• uIdentified associated potential synergies 
  
• uInterviewed key acquiring company officers and determined cultural fit
• uSupported client through due diligence process

• Client declined to merge with acquirer
• Identified potential synergies were not significant 
  
• Cultural fit was poor
• Premium offered was not sufficient
• Acquiring company had adopted a strategy that was likely to negatively impact earnings for the next one to three years