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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (60470)	9/16/1999 6:52:00 PM
From: kathyh	Read Replies (2) \| Respond to of 90042

hi tim... due diligence... the time frame varies greatly from situation to situation... 30 days might be a reasonable time period for a small to medium size business, but it could be longer for more complex situations, such as multiple locations, intellectual properties that make up a great deal of the sale price... basically how much time needs to be spent analyzing the various aspects of the business... price and basic terms will have already been set, in some type of purchase agreement document... the buyer has right to inspect books, physical property, corporate documents, etc... the length of this due diligence period is set in this purchase agreement... buyer usually has some opportunity to get out of the contract if they find evidence of any material misrepresentation, or don't like what they see, again this is all subject to negotiations... and the outs are also part of the agreement... for an extremely complex company, like an exxon, for example, the due diligence period could be several months... fyi, here is a "due diligence" glossary from kpmg... kpmg.ca i am not an attorney or cpa, so someone else on the thread may have more info than i do... but in general the answer is... it depends... <g>

To: Tim Luke who wrote (60470)	9/16/1999 7:22:00 PM
From: Arul K. Edwin	Read Replies (4) \| Respond to of 90042

In most cases the acquirer company waits till the acquiree company appreciates to a good level. So that they won't appear to be paying too much of a premium!!!...Why didn't LU take over ASND when it was 40 with the same price they paid later...it would appear they were paying 100% premium...so were FORE, XYLN, OSI etc. IMO, they wait till the rumor mill, good earning report etc. take the company to a higher level and then come out and buy it!!!!. Therefore CS will be taken over when it punch through $20...(my $0.02) Now who among PIOS and KNT is ripe for take over? KNT has cash over $3, therefore even if they pay a higher premium it wouldn't appear too bad. Some electronic industry comparisons: -------------------Revenue-------Revenue per employee -------------------(Million)-----(Thousnads) Arrow Electronics--5,340--------860 Avnet--------------4,870--------701 PIOS---------------2,133--------865 Marshall Ind.------1,700--------773 KENT-----------------622--------445 NuHorizon------------327--------474 JACO-----------------145--------584 VEBA Elect.--------2,150--------782 (Private) Arrow-PIOS combination will be a 7.5 Billion Company, (I think PIOS has just about 31 million shares outstanding), and when that happens others will follow.....

To: Tim Luke who wrote (60470)	9/16/1999 8:01:00 PM
From: max power	Read Replies (2) \| Respond to of 90042

re dd - the company I worked for was acquired by BHI. Since we were an international company with numerous labs,offices,plants,etc., the dd was 90 days. Tom