Technology Evaluation of a Proposed Corporate Acquisition

A Case Study (download )


The Layne Company


Proposed Corporate Acquisition

Services PROVIDED:

Type of COMPANY:

  1. Four-year-old business selling engineered wastewater treatment systems.
  2. Installations in Central America and North America.

The Layne Company has been in growth mode for many years on the basis of its long success providing water supply and drilling services to cities and towns across America.  Layne made a commitment to grow the wastewater treatment side of its business both organically and through acquisition. One of the companies identified for possible acquisition was a young wastewater technology company with a great deal of belief but few installations. Wastewater Experts, Inc. was hired to analyze the company and its technologies, evaluate the full-scale operating facilities, and help determine the competitiveness of these technologies in the North American Wastewater Marketplace.
The target company made bold technology claims and offered assurances of dozens of large projects in the Sales pipeline. But within a few weeks it was clear that there were issues:

After on-site investigations, review of existing installations, design principals, and Sales claims, Wastewater Experts made a strong recommendation to abandon the acquisition. Within two years the targeted company was out of business, leaving large performance liabilities in its wake.