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Tescan

Advanced analytical and imaging technologies
PE-OWNED

PE-OWNED

Acquired by Carlyle Group

View PE Firm Profile

What PE Will Likely Do

Tescan will experience aggressive cost-cutting measures, including deferring maintenance on analytical instruments and reducing R&D budgets for new product development

HIGH LIKELIHOODBased on: Carlyle Group's history of aggressive cost-cutting and debt loading in acquired companies

Tescan's advanced imaging technologies will likely see a decline in performance and reliability as older equipment is not properly serviced or upgraded

HIGH LIKELIHOODBased on: The industry playbook showing high frequencies of tactics like maintenance deferral in similar PE-backed acquisitions

Customers relying on Tescan's analytical solutions may experience more frequent downtime, longer repair turnaround times, and reduced technical support

HIGH LIKELIHOODBased on: Tescan's position as a provider of specialized analytical and imaging technologies, which are sensitive to cost reductions

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcements about 'operational efficiency' initiatives and 'optimizing the portfolio'

6-12 monthsYOU ARE HERE

6 to 12 months months

First rounds of staff reductions in R&D and technical support teams

12-24 months

12 to 24 months months

Noticeable decline in instrument performance, increased service disruptions, and longer wait times for repairs

24-48 months

24 to 48 months months

Potential product quality issues and complaints from Tescan's scientific and industrial customers

48-60 months

48 to 60 months months

Increased risk of Tescan filing for bankruptcy or being sold off in a distressed acquisition

What You Can Do

Actions

  • Customers relying on Tescan's products should closely monitor performance, reliability, and availability of technical support

  • Consider diversifying critical analytical instrumentation to mitigate risk of Tescan service disruptions

  • Advocate for Tescan to maintain R&D budgets and equipment maintenance schedules to preserve product quality

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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