Resource Investment | Market Entry

Client: Tennant

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Strategic Decision: Should Tennant acquire an Ireland-based firm to help Tennant enter the European market?

 

Decision Intelligence: Two critical dynamics made the acquisition less desirable. First, the internal management team was making an offer to acquire the firm and had the inside track to winning the LOI. Second, the company’s most valued asset, its distribution network, was in truth very weak, with many of the key participants unhappy with the firm and already moving on to competitive options.

 

Outcome: Tennant elected to pass on the opportunity. The management team did purchase the firm, but as forecast, the business declines driven by the weakening distribution network resulted in the company being sold at a loss.