Testing the target’s reaction prior to launching a friendly takeover

Our client wished to acquire a competitor’s local subsidiary but hesitated to approach the parent company for fear of the company’s reaction and the impact it might have on a future negotiation. InfoForce first discretely tested the competitor to find out what it thought of its subsidiary’s performance.

The feedback was that the parent company was disappointed by its subsidiary’s performance and that in its mind it did not occupy a strategic position in the local market or in the company’s development plans.

What also appeared was that the parent company was considering selling off the subsidiary but had not done so for fear of projecting a negative image for the firm. Having developed excellent contacts with the parent company in the process, InfoForce was able to broker a deal between both parties much to their satisfaction.

 

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