Success Stories

DUE DILIGENCE:

THE CLIENT CHALLENGES:
The client needed to ascertain any operational difficulties and variations in its initial valuation of an acquisition target. The client, a well-established investment banker, was interested in acquiring a nationally distributed women's fashion catalog. The client did not have the internal resources or expertise to perform this detailed evaluation within the necessary timeframe.
Applied Retail Technologies was asked to perform a complete on site review of several key functional areas and develop an accurate and timely assessment of the acquisition target.

ART's SOLUTION:
Applied Retail Technologies drew upon its extensive catalog experience to perform an exhaustive on site review of several functional areas of the company within the time frame and budgetary constraints of the engagement. Applied Retail Technologies' on site review included the functional areas of Merchandising, Distribution, Inventory Control and Systems. A detailed analysis was made of all the key historical performance data as well as a review of the operational processes. In addition, ART developed an analysis of the systemic support within each area and the improvements in systems support that would likely be needed for future growth of the business. Attendant to their review, ART performed a detailed valuation study on the inventory owned by the potential acquisition.

BENEFITS TO THE CLIENT:

The due diligence analysis provided the client with timely insight to those issues that might adversely impact the business as well as those presenting potential upside to the business.
ART was able to ascertain that the inventory valuation as presented by the target company was incorrect, thus giving the client leverage in finalizing the overall valuation of the company.
In addition, the due diligence analysis highlighted several easily implemented operational improvements that would improve the overall profitability of the target company both in the short and the long term.