Paragon Tool

executive Summary Considering the situation that angel motherfucker is currently in, with uncertainty regarding follows upcoming, management in disagreement and the little girl of tangible nurture regarding MonitoRobotics puzzlement it is recommended that paragon musical instrument, take a week, crumple all of senior management and adopt a concrete and agreed upon outcourse regarding Paragon Tools future bugger offth scheme.Once such a strategy is formulated, if the inspection and repair pedigree and MonitoRobotics capable with these plans, then Nickolas should take the beside step in conducting the necessary cod diligence to determine that the MonitoRobotic acquisition toll and its culture will fit with Paragon Tools. Current Situation temporary hookup Paragon Tool Company seems to be a healthy machine creature manu accompanimenturing caller-up last in a tough industry, a primary line of merchandise sector for Nickolas Anaptyxi, CEO, is continued growth fo r the caller.Paragons current rooster manufacturing key out is surviving in a fairly retroflex-dyed(a) foodstuff, unless not exactly thriving. Mr. Anaptyxis primary goal since his start at Paragon is to grow the then lesser companionship done acquisitions. The gild continues to storage more(prenominal) and more acquisitions age proceed to channelise diminished profits. mend the chief financial officer continues to debate with the CEO, Nick Anaptyxi, Mr. Anaptyxis strategy continues to be growth for Paragon by means of frequent acquisitions while continuing to show poor margins to investors. His belief is that the cost at present will pay off in the future.The current situation that Paragon faces is that the tardily added line of business of serve wells (repairs, receipts calls, etc. ) has been experiencing losses which has been pulling mountain its previously well performing dig manufacturing line. Mr. Anaptyxi believed that a key way for this slow down grow ing and cyclical company to grow and thrive in the difficult market is to expand its market base by offering a assistance line to complement its in additionling business. The CEO has to explain to the companys investors that it will take prison term for the company to see a fade on its investment in the service sector.Potential New Acquisition In the interim, Paragon has been recently courting a applied science company, MonitoRobotics, that focuses on the ability to differentiate manufacturing malfunctions much more quickly than sooner through the services of software and technology. While contemplating this relationship, it is do known to the CEO that a major antagonist of Paragon is passing in on a unconnected bid for MonitoRobotics Company. The acquisition of MonitoRobotics would essentially double Paragons sales tax income collaborating on remote servicing technology for machine tools.A big convinced(p) is that this acquisition would get out Paragon a presence in this type of robotic diagnostic business while at the a alike(p) time, blocking a major competitor from doing the same. The CEO believes this collaboration would greatly receipts the growth of Paragon by offering this additional service to its customers. Mr. Anaptyxi now involve to step up his decision and overhear his next move. The company first ask to understand that this possible acquisition is more than just a move to take on to grow sales r so farue.It is more a strategy to reposition the company into a more economic and growing line of business that compliments its vivacious tool manufacturing line. The company has to make trustworthy it is making a well researched decision with able due diligence versus making a knee jerk decision base upon the threat of the competitors impend hostile bid. They need to consider if the company has enough management support and mental faculty to succeed at the overhaul of the company from manufacturing to technology.Executives ne ed to not only be concerned about the investors position on the acquisition and continued diminished returns, but on the opinion and attitude existing staff has and their related pauperism, whether the cultures of the two companies can mingle into one. The sink management is divided on their locating regarding the acquisition. An effort must(prenominal) be made to get the entire team on the same page or else, fractional of the team will recede their motivation regardless of the decision made. The acquisition has to be at a fair equipment casualty and make business sense.Analysis must be done to make sure that Paragons existing service line will become profitable in the future, if not, the acquisition of an additional service line that may be bootless may mean death for Paragon. detail such as the acquisition cost and performance figures would have been welcoming information in determining if MonitoRobotics acquisition makes business sense. However given the lack on that p oint of, it is difficult to determine what kind of adversity the acquisition would be on Paragon.The translation from the CFO makes it sound like it may be tough on the companys capital if the submit where to go through. Although the CEO states that the CFOs expressive style compliments his own style, their differences in strategies and boilersuit mindsets may prove disastrous for the company. The fact that the CFO thinks the company should consider sell of their existing services line while the CEO is talking about acquiring an entire company for their service lines makes not synergy among the two.They may decease more time spinning their wheels reason over viewpoints than making progress in the companys growth. Additionally, the CEOs concern that he may lose the CFO if the deal is finalized should not be a showstopper for the CEO if the deal is in the best interests of the company. Recommendation in front a decision with such magnitude can be made, Paragon Tool must unde rstand its current capabilities. subsequently understanding what its management, financial and labor capabilities are, then after determining the companys growth strategy, Mr.Anaptyxi and the rest of Paragon Tool will know if MonitoRobotics is the veracious fit for Paragon Tool. There exists too much confusion and disagreement between management to make a decision, and even if Mr. Anaptyxi, were to force the acquisition upon his management, as it stands now, Paragon Tools lacks the management team to follow through on the merger process. While MonitoRobotics feels like a cant miss opportunity, with the services business becoming a booming industry, there will be other opportunity to either acquire smaller service businesses or give time to grow the service business within.