Group -6

Abhinav Singla | Arooshi Bajaj | Mukul Khedwal | Nitin Jaiswal | Saurabh Paul | Shashank Garg |
Shivanjali Meena | Vishal Varshney

Due - diligence DCVC by Tata Motors

Financial
● Deals was finalised at $102 million from the initial estimated price of $203, TM was
excited about this, as the deal was to bring synergies further as well the only doubt was
about the cultural exchange , because they knew if the deal does not happen 2 way,
everything will up for a toss
● Save 2 years of cost on the global trucking program
● TM was confident about the Financial health of the DCVC, as the bankruptcy process
had forced creditors to take significant write downs, plus DCVC had undertaken
extensive restructuring and initiated some layoffs, their balance sheets were clean.

Legal
● TM engaged the services of Local law firms and international accountants for financial
and investment advice but no M&A consultant thought it to be their own responsibility.

Strategy
● DD team - HR, Operations, marketing and IT managers instead of only financial team,
the strategy was to involve the people who will be running the business in the DD team
● To lure the DCVC team - TM translated bid and company material into Korean in short
span of time and also presented their strong work culture to win the trust (sell TM to
DCVC)
● DCVC had much more hierarchical structure than TM, so Mr. R.S. Thakur TM’s vice
president of finance took all communication in his hands to ensure senior managers were
not undermined by direct communications with their subordinates.
● The TM team also told in presentation about the good corporate governance that was
strongly emphasized in their organisation, this gained a lot of attention as the Korean
government had been grappling with the issue of corporate governance for family owned
conglomerates such as Daewoo
● Another crucial factor was the strong support provided by the chairman , Ratan Tata
● TM demonstrated strong work ethics which was praised by DCVC
● This acquisition would gain TM, the rights to Daewoo Name
● In acquiring DVCV, TM took further 5% discount however they accepted some
liabilities, and provisions against severance pay for employees
​HR
● TM manager were also able to uncover the fact that initially DCVC was looking forward
to European company to takeover considering their technological and financial resources
- same was seen in the hospitality provided to the bidders
● TM also visited Customers and transporter’s association to obtain information who
welcomed TM and told them about the Strong work ethics of these companies.
● They even visited foreign buyers of other Korean firms, a consistent view was Koreans
were passionate and dedicated employees, if acquisition was handled properly it could
mean strong support of DCVC employees.
● TM also agreed to union demands that no Tata Daewoo Commercial Vehicles (TDCV)
workers would be laid off in the first 3 years after acquisition

Ops - IT
● Underutilised plant assets - DCVC had installed state of the Art plant with 20,000
capacity in 1995 also 800 plant worker has recently completed 6 months training in japan
and were viewed to be well trained