Intensive due diligence is the backbone of any partnerships or investments?
Have been reading about the TKL/Orange situation, there are many lessons to be learnt from the current saga. The problem is due diligence based on financial records may not be enough to justify partnerships. Books can be cooked, assets can be over-estimated/under-estimated as is the case with each parties case etc. Due diligence should also be based on performance, management and a proven track record to deliver. Which takes me to the next point : When local public companies take on board members, who performs the due diligence on such people? What criteria is used to say " ok, so and so is a top manager/ceo at so place and is therefore a candidate for the board position who will take the public entity to a new level "? Rgds. ( Am away for some weeks, so reading mails very randomly.)
I think the due deligence should be driven by why you want to buy the company in the first place. France Telkom saw a company with lots of physical assets,good infrastructure which was under-utilised,So Telkom was bought not because of its performance but because of its potential. They should have done an asset based due diligence to counter check all important physical assets and the infrastructure before buying.And lastly the list of creditors.(ensure you do inherit the creditors). On Fri, Jun 4, 2010 at 11:25 AM, aki <aki275@googlemail.com> wrote:
Have been reading about the TKL/Orange situation, there are many lessons to be learnt from the current saga. The problem is due diligence based on financial records may not be enough to justify partnerships. Books can be cooked, assets can be over-estimated/under-estimated as is the case with each parties case etc. Due diligence should also be based on performance, management and a proven track record to deliver.
Which takes me to the next point : When local public companies take on board members, who performs the due diligence on such people? What criteria is used to say " ok, so and so is a top manager/ceo at so place and is therefore a candidate for the board position who will take the public entity to a new level "?
Rgds.
( Am away for some weeks, so reading mails very randomly.) _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Server donations spreadsheet
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sorry the last part should read (ensure you don't inherit creditors) On Sat, Jun 5, 2010 at 3:04 PM, Joseph McDonald <mcdonaldoj@gmail.com>wrote:
I think the due deligence should be driven by why you want to buy the company in the first place.
France Telkom saw a company with lots of physical assets,good infrastructure which was under-utilised,So Telkom was bought not because of its performance but because of its potential.
They should have done an asset based due diligence to counter check all important physical assets and the infrastructure before buying.And lastly the list of creditors.(ensure you do inherit the creditors).
On Fri, Jun 4, 2010 at 11:25 AM, aki <aki275@googlemail.com> wrote:
Have been reading about the TKL/Orange situation, there are many lessons to be learnt from the current saga. The problem is due diligence based on financial records may not be enough to justify partnerships. Books can be cooked, assets can be over-estimated/under-estimated as is the case with each parties case etc. Due diligence should also be based on performance, management and a proven track record to deliver.
Which takes me to the next point : When local public companies take on board members, who performs the due diligence on such people? What criteria is used to say " ok, so and so is a top manager/ceo at so place and is therefore a candidate for the board position who will take the public entity to a new level "?
Rgds.
( Am away for some weeks, so reading mails very randomly.) _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Server donations spreadsheet
http://spreadsheets.google.com/ccc?key=0AopdHkqSqKL-dHlQVTMxU1VBdU1BSWJxdy1f... ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
when orange bought telekom, CDMA/Wireless was picking up well, then orange decided that CDMA needed a well deserved holiday. Now they realize that that was a mistake and are busy rolling out internet everywhere 3G+. I mean, when Zain was complaining about the cost of 3G, orange bought a network with 3G and decided to give it a break...
participants (3)
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aki -
Dennis Kioko -
Joseph McDonald