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Technology Acquisition and Project Management Highlights Results • True Shareholder Value of acquisition target increased from $0.61 million to $1.49 million. • Time required: 2 days Description Industry Computer equipment manufacturing. Business Problem Valuation of acquisition target and associated project management for bringing acquired technology to market. Issues • VP in charge of acquisition would simply attempt to negotiate to 25% lower than asking price, rather than assessing True Shareholder Value of the acquisition. • Project manager would potentially overspend on high-priced consultants to ensure project “success” due to corporate incentive structure. • History of product development continuing well after most of the revenue opportunity had passed. • Point projection of future demand was used, ignoring uncertainty and learning. Provisdom’s Solution • Required only two (2) days for complete analysis. • Modeled uncertainty and learning for future product demand and difficulty in bringing the product to market in a reasonable timeframe. • Included options to switch engineering teams or quit development if costs were not justified by current expectations about demand. • Strategic alignment between VP of acquisitions and project manager.
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