(207d) Knowledge Transfer and Support of New Technology Acquisitions

Successful acquisition of new chemical process technologies requires many steps both from a commercial and technical due diligence standpoint. Two of the most important steps are the meticulous transfer the entire knowledge base to the acquiring company followed by the development of plans for continued technology support after the commercial deal is completed.

In many instances, the technology seller provides limited technology support for a finite time after the commercial deal is complete, making it imperative that every effort be made to efficiently transfer as much of the technology knowhow as possible before support ends.

The plan going forward may include the retention of key technical employees that were intimately involved in the development of the technology and/or sales force employees that know the market and customer base, but ultimately the acquiring company must include the development of these critical resources within its own operating footprint.

Those resources include research and development, engineering, marketing and licensing as well as many other services key to the commercialization, sales and support of the newly acquired technology.

The entire process is illustrated in the cases studies of recent acquisitions by TechnipFMC.