ETO Magnetic, a German company and client of the DFK member firm in Munich, Peters, Schonberger & Partner (PSP), planned to purchase Lanker Diversified Industries, Inc. (known as LDI) a Grand Rapids, Michigan Auto Parts Manufacturer through their subsidiary ETO Magnetic USA. Bernhard Winterstetter, a partner in PSP, contacted Frost, Ruttenberg & Rothblatt, P.C. (FR&R), the DFK member in Chicago, Illinois to undertake due diligence work after a letter of intent was written, but prior to the closing of the Purchase.

FR&R Partners, Tim Crosby and Gary Rose headed the project that involved a number of FR&R employees and several trips to Grand Rapids. In the process of conducting the work, Tim & Gary established a good working relationship with the COO and CFO of ETO Magnetic, Germany.

The ultimate result was a satisfied client, a lower purchase price due to information uncovered in the due diligence process and an ongoing auditing relationship. In addition, FR&R has been asked to be the accounting arm for ETO Magnetic USA and will be utilized to help them in future acquisitions and for other business needs as they arise.