Acquisitive, Inc. is a European energy company, who’s business has been impacted the past several years due to efforts by citizens to consume less energy.
Acquisitive is finding it hard to produce energy at a sustainable cost. Acquisitive has attempted to diversify its business away from energy production in recent years in case it finds the shifts in consumer behavior are too much to overcome. After this consideration, Acquisitive, Inc., determines it is interested in acquiring Miners and Co., an Australia-based coal mining company that mines coal and sells it to energy companies and steel producers around the world, and hired Deloitte to help assist during the due diligence process of this potential acquisition. Key considerations regarding Miners and Co.’s business are as follows:
A key first step of the diligence process is for the M&A team to understand the Client’s (Acquisitive) motivations behind the potential merger (i.e. what the Client hopes to gain from the purchase).