Veridian: Putting a Value on Values 1. What is Veridian’s strategy for making money for its shareholders? Veridian is a defense information technology company that has always remained consistent in its focus of values-based leadership to create a long term strategy of meeting the needs of customers, employees, suppliers, as well as shareholders. Because of the broad intention and focus of the leadership, the corporate culture attracts the highest-skilled employees who are able to deliver outstanding technology and unrivaled services.
This niche for professional defense service allows shareholders an opportunity to invest in a company that strives for consistent growth at a reasonable rate and price. 2. How should David Langstaff think about the proposed acquisition? David Langstaff must create a valuation system to determine the closest accurate estimate of the company’s current worth, and evaluate it within the offer from Quiescent.
In this system, he must consider the long-term vision and growth ability of Veridian, in light of the values-based management which has become the core of the company. Will the acquisition further the ability of values-based leadership in the defense information industry, or will this be best achieved through Veridian remaining as is? Also, David must continue to consider not only the shareholders, but also all stakeholders, including employees as he evaluates the risks and opportunities of the acquisition. 3. What is the source of value of Veridian to Quiescent?
Veridian serves as one of the largest companies in the defense industry, as well as having an established reputation as managing the best personnel in the industry and offering services that exceed other competitors. With over a billion dollars in revenue, Veridian would instantly add value to Quiescent through cash flow, added revenue, a wider customer base, and strong industry reputation. Additionally, the acquisition would narrow the competition in this high-end security market. 4. What are the implications of an acquisition of Veridian by Quiescent?
The implications of an acquisition would be many and as diverse as the stakeholders themselves. The largest risk at stake for Veridian remains the perception of the authenticity of its core values, as stakeholders could quickly decide the acquisition doesn’t represent the values-based leadership in which the company built its success. Although the acquisition could certainly provide short-term financial gains, it may not be able to sustain the critical core values of Veridian, compromising in stakeholder opportunity, growth, and company sustainability in the long-term.