IET, Inc.
3539 Glendale Ave
Toledo, Ohio 43614

Case Study 3-10827

Look before you leap!

IET evaluated a start-up company’s ability to execute its production plan for a group considering a significant investment in the company.

The Customer

The business incubation arm of a state-chartered university that is committed to science and technology research

"All of us on the due diligence team … were very pleased with the quality, timeliness and budget-compliance of the project."

Executive Director

The Challenge

A start-up company that was commercializing a new, alternative energy product needed additional venture capital funding to take the business to the next level. Before committing additional funds, the business incubation group needed to perform due diligence. Technological and manufacturing feasibility were two key focus areas of the evaluation.

The Solution

IET assigned two engineers to assess the start-up company’s manufacturing operations. Using interviews, historical records and data collected through direct observation of the plant’s operations, IET created a production capacity model. Current performance levels of key parameters, such as equipment utilization, processing speed, and process step yield, were verified and then compared to target levels. The gaps indicated where the start-up company’s team would have to make improvements, so IET also investigated the organization’s demonstrated ability to overcome technical and operational obstacles. Based on anticipated volumes, the model generated equipment requirements for each operation that were then compared to the original funding request.

IET concluded that the start-up company’s production plan was indeed feasible, and the accompanying request for capital equipment was accurate. This finding was combined with outputs from other team members in a formal report to the due diligence team within the business incubation group. The entire project was completed in two weeks.

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