Valhalla Partners Due Diligence - Case Study Example

Deciding to go ahead and invest in Telco Exchange would create a nice future for Valhalla if everything went well. Art Marks is educated and has plenty of real-world experience that will assist with making a fair and important decision. This opportunity, if Art Marks decided to vote yes, would allow Valhalla to test out their new due diligence process and decided whether or not the process was a good idea. The Due diligence process consisted of a twelve step process that followed a certain order.

This certain order was important for Valhalla to become the most profitable and aid companies that it may be investing in. The steps began with a one-pager, and then deep diligence would begin. Next would be an investment memo followed by an investment decision. The decision would lead to a present term sheet, negotiating terms, a 100-day plan, and a close. Following the close are an active board stewardship, finance and research assistance, critical moves and an exit. This due diligence process would play a huge role in the decision by Marks.

After learning about the company and what it has to offer, Art Marks should vote yes on investing in Telco Exchange. Telco Exchange is already in business with popular companies like IKON and Marriot. If these already established companies were able to seek services from Telco Exchange it was likely that with the right marketing, Telco Exchange can become more popular and become more successful. Becoming more successful would make Telco Exchange a better investment. The Due Diligence process would help ensure that Telco Exchange is where Valhalla wants it to be.

An appropriate valuation for Valhalla and Telco Exchange is to work with one another. Working with one another and coming to an agreement that is beneficial to both businesses will create better relations between the two and open up more opportunities in the future. Valhalla partners need to think about how the future of a successful Telco Exchange can benefit Valhalla. Like any company, Telco Exchange faces risks. Risks can be changeable and benefit investors or they can be unchangeable and make investing seem like a waste of money.

The top three risks facing Telco Exchange are easy to move past. One of the main risks is marketing. Marketing is important for companies to get there name out there and move forward. The memo doesn’t really state the marketing that Telco Exchange has in place. A good marketing strategy will help improve Telco Exchange and make Telco look more appealing to investors. The second risk associated with Telco Exchange is the issues it faces with software. The software can never be perfect and will always require upgrading and repairs.

What does Telco have in store for upgrading and improving software? Companies are always going to want the best and the easiest.