Outlook Analysis Corporation - Mini-Case Histories of Outlook Analysis Assignments

* * *
Our Assignment: Sales executives in Asia advised their American corporate headquarters that agents from a competitor were attempting to gather information about the American manufacturer's operations and strategic plans for expansion into a neighboring Asian country. OAC was assigned to discover the specific objectives of the competitor's agents, the depth of information they already had obtained, details on their methods for obtaining information, and the strategic purpose behind the intelligence effort.
Information Results: OAC analysts obtained the requested information, including details of the competitor's strategic plan and operations for gathering the intelligence. Armed with this information, the client was able to control the competitor's information acquisition efforts and then launch a disinformation program aimed to provide false information to mislead the competitor.

* * *
Our Assignment: Client company management heard rumors that a chief competitor had developed a new product whose features and benefits would obsolete the client company's major product. OAC was assigned to quickly check out the rumor, and, if the rumor was true, obtain detailed information about the competitor's new product.

Information results: OAC analysts learned the competitor had indeed designed a new product with more product features and benefits than the client's product. OAC learned and reported detailed information on the design, technology, features and benefits. OAC analysts also discovered the new product worked extremely well under simulation, but crashed under real-time use. Consequently, the competitor's new product would have to be redesigned before it could be placed into production.

* * *
Our Assignment: When a client learned its major competitor planned to introduce a new product quite superior its own products, the client assigned OAC to conduct research on the competitor’s new product to find information on the product’s technical features, manufacturing schedule, and marketing campaign to launch the new product.

Information results: Within three days, OAC analysts obtained information on the competitor’s new product, including configuration, specifications, test performance data, power requirements, cost data, and the details of the marketing campaign. OAC analysts also discovered manufacturing problems that would delay launching the new product.

* * *

Return to top
Corporate Due Diligence

Our Assignment: When the innovative products of a small company caught an executive’s attention at a trade show, he asked OAC to research the company.

Information Results: OAC researched the small company and found in-depth information on its product technology, corporate strategies, a forthcoming marketing campaign, and also detailed information on its revenues, pending new business, finances, operations, and manufacturing. OAC analysts also learned and reported the small company’s plans to raise capital and its criteria for forming a strategic partnership.

* * *

Our Assignment: When an executive heard a salesman of its primary competitor make fantastic claims about his company’s newest product that was just being announced, the executive asked OAC to research the company and its new product.

Information Results: In-depth due diligence performed on the company found detailed information on the company’s management, operations, marketing and sales, and the new product technology and performance. The research showed the salesman had indeed hyped the new product and management was unaware of his exaggerated claims. While the new product could not perform as the salesman had promised, the improvements now being designed into an upgraded version of this product probably would meet the performance level promised by the salesman. However, the upgraded version would not be ready for delivery for several months after the introduction of this product.

* * *
Corporate Governance and Oversight

Our Assignment: Because Board members were concerned that a subsidiary operation was falsifying revenue and cost data supplied to the parent corporation, OAC was assigned to research the situation.

Information Results: OAC analysts discovered the vice president of marketing and controller of the subsidiary were embellishing sales and revenue results, but not to the extent that the board members feared. The Board and senior corporate management took action to correct the situation.

* * *
Our Assignment: Board members and senior management became concerned about a possible rogue operation in one of the corporation's subsidiaries. OAC was tasked to research the subsidiary to determine the validity of the suspicion.

Information results: OAC analysts discovered the intricacies of the rogue operation, gathered detailed information, and reported it to the Board which took appropriate action.

* * *
Customer Relations Analysis

Our Assignment: When the purchase orders of a client company's largest customer slowed to a trickle and the customer's purchasing managers declined to discuss the matter, the client company asked OAC to learn the reasons for the slowdown in orders.

Information results: OAC analysts learned the customer's manufacturing operations were experiencing serious problems they did not want publicized. Armed with this information, the client company worked with the customer in finding and implementing solutions that solved the customer's manufacturing problems. Consequently, the client's sales to the customer soon exceeded all projections.

* * *

Return to top
Due Diligence for Venture Capitalists and Private Equity Investors

Our Assignment: When a brilliant entrepreneur presented a venture capital proposal to finance his start-up artificial intelligence company, the institutional investors exhausted their networks of experts before asking OAC to obtain information on the entrepreneur and his technology.

Information Results: OAC analysts learned the entrepreneur's team was only working on one aspect of the artificial intelligence technology that the entrepreneur's fledgling company claimed it was developing. The entrepreneur's strategy was to obtain funding without revealing the other aspects of his technology were only in the early research stage, thus attempting to deceive the investors into believing all aspects of the technology had successfully progressed from research into the development stage. OAC analysts also provided individual due diligence on the entrepreneur.

* * *
Our Assignment: A start-up technology company was said to have developed software that would revolutionize the consumer loan business. When the company was recommended by an intermediary to a venture capital firm for funding, OAC was assigned to research the company.

Information results: OAC analysts discovered the software was far from developed and several flaws needed to be corrected. In addition, an individual due diligence analysis of the company president showed a high probability that he would not be effective in building a successful company. Other venture capital firms not privy to this information gave twenty million to fund this company. Later OAC's analysis was proven correct when the company declared bankruptcy.

* * *
Our Assignment: When the president of a construction company unexpectedly approached a high technology start-up company and offered to invest several million dollars, the high technology company asked OAC to check out the president and his company.

Information results: OAC analysts discovered the company was legitimate, however, the president had close ties to organized crime and his investment capital partially came from partners who belonged to organized crime. The objective of the president and his partners was to buy a majority interest in the company, take control, and sell the technology. Obviously, the high technology company turned down the investment offer.

* * *
Due Diligence on Individual Executives

Our Assignment: When a client company considered promoting an exemplary executive vice president (EVP) to the position of president, OAC was asked to analyze the EVP.

Information results: OAC analysts confirmed management's analysis of the EVP managerial skills and style. In regard to leadership abilities, OAC analysts found the EVP needed help from a senior executive in making many of the decisions a company president was required to decide on his own. After reviewing the OAC report, management agreed with the OAC analysts and discontinued consideration of the EVP for the position of president. The EVP continued in his present position, turning in outstanding performances.
* * *
Our Assignment: When an American client company was seriously considering hiring a European marketing manager for its foreign marketing and sales operations, OAC was asked to conduct individual due diligence on the individual.

Information results: OAC analysts found previously unknown problems the individual had had during his years with a very large European company. The extent of the problems terminated interest in hiring him.
* * *
Financial Intelligence for Banks and Other Lending Institutions

Our Assignment: When a manufacturer defaulted on a loan, the lead lending institution asked OAC to conduct research to find any assets the manufacturer might have hidden over the years.

Information results: OAC analysts discovered the manufacturer had delivered equipment to a boat builder, but had neither recorded the sales nor received payment for the equipment. OAC analysts also found the manufacturer had made several real estate investments, but neither taken title nor recorded the transactions. The value of the hidden assets almost equaled the amount of the balance owed on the loan.
* * *

Return to top
Legal Issues and Litigation

Our Assignment: When a client company was sued by a large corporation that appeared to have the upper hand in the lawsuit, OAC was assigned to find information that would help the client company improve its position.

Information results: OAC analysts learned the opposing company's strategy and tactical action plan for the lawsuit. In addition, OAC analysts discovered the chief counsel for the opposing company was trading stocks on inside information and reported this to the client company.

* * *
Marketing and Sales

Our Assignment: When a struggling technology company unexpectedly was invited to bid for a huge contract by a major corporation, management became concerned about any hidden agenda that the major corporation might have. Management concluded the size of the huge contract warranted having OAC conduct due diligence on the major corporation.

Information results: OAC researched the major corporation and learned it was dissatisfied with its present suppliers’ low product quality and nearly obsolete technology. While the major corporation would have liked to make the struggling technology company a captive supplier, it was willing to settle for a long-term contract and technology licensing agreement. Armed with this and other information, the client technology company’s management negotiated an optimum contract that led to an amicable and profitable relationship.
* * *
Merger and Acquisition Candidates and Negotiations

Our Assignment: An information technology company asked OAC to research an acquisition candidate whose software tools were needed to advance the IT company's software products over the next three years.

Information results: OAC analysts discovered the acquisition candidate's technology was not scalable to the level on which the acquisition was based. This meant the software tools would have to be totally redesigned within one and a half years, the cost of which would turn the acquisition into a net loss. The client company immediately disengaged from any further discussions with the software tools company.
* * *
Our Assignment: When a client company commenced negotiations with an acquisition candidate, OAC was asked to research the acquisition candidate's negotiation strategy, any hidden agendas, undisclosed pressures impacting the negotiations, and the price, terms and conditions that the candidate would likely accept.

Information results: OAC analysts found and reported the candidate's management team was eager to merge with the client company because the team had determined it could not maximize their company's market opportunities unless their company was part of a larger, well known company that already had a significant share of the marketplace. OAC analysts also evaluated the technology. OAC analysts also discovered and reported the ratio of stock versus cash the management team was willing to accept in payment for their company as well as acceptable terms and conditions.

* * *
Our Assignment: When a European multinational company approached one of its U.S. suppliers about making a substantial investment in the U.S. company, senior management of the U.S. company asked OAC to obtain information on the Europeans' true intent in opening investment discussions, any hidden agendas, and their negotiating strategy.

Information results: OAC analysts discovered the European's primary motive was to lock in the U.S. company as a captive source of components needed to expand the European's product lines. OAC analysts also reported the acceptable bottom line price, terms and conditions the Europeans were willing to pay the U.S. company.
* * *
Our Assignment: A public company approached a client company to open acquisition discussions. Although the client company had a wealth of information about the public company, the client company asked OAC to find the real reasons behind the merger discussions, any hidden agendas, any pressures on the public company to acquire the client company, and whether the public company had determined the terms, price and conditions it would accept, and if so, what they were.

Information results: OAC analysts found this information, including details of serious problems at the public company.. Armed with this information, the client company backed away from the merger discussions. The client company concluded that, if it had gone ahead with the merger, its shareholders would have lost most of the value of their holdings.

* * *
Our Assignment: A client company wanted to purchase a manufacturer capable of supplying components for several of its products. Since there were several qualified suppliers, the client asked OAC to research each company to determine any significant problems within the company and particularly its manufacturing operations, the disposition of management and larger shareholders towards a merger, and whether the board of directors had conducted a valuation of the company in a merger.

Information results: OAC analysts researched the candidates and found the requested information that enabled the client to target the best acquisition candidate. OAC’s research saved the client money, time and resources, including achieving a lower than expected acquisition price.

* * *

Return to top
Negotiations of Every Type

Our Assignment: When a large European manufacturer indefinitely postponed its sales contract negotiations with a client company, OAC was asked to find out the genuine cause.

Information results: OAC analysts found and reported the European company wanted to either acquire the client company or buy a significant portion of the client company in order to lock in an exclusive supply arrangement. This information enabled the client company to negotiate a most favorable contract.
* * *
Our Assignment: When a small company entered into major product sales contract negotiations with a division of a large multinational corporation, management concluded it was a David versus Goliath situation. Management asked OAC to research the division’s negotiating team and the division group to which it reported.

Information results: OAC performed in-depth due diligence on the negotiating team and also learned the terms, conditions, and highest purchase price acceptable to the division group. OAC also updated the information during each step of the negotiations. The in-depth information enabled the small company’s management to negotiate a generously favorable contract

* * *
Product Analysis

Our Assignment: When a foreign company announced a new product, a client company asked OAC to conduct a product analysis before the product reached the marketplace.

Information results: OAC researched the foreign company and its new product and found the requested information, including performance data and minor design problems. OAC also found in-depth information about enhancements scheduled to appear in a product upgrade scheduled for later that year.

* * *