Due Diligence in Silicon Valley
About twenty hours later, In-hyuk stood inside San Jose Airport in California. Only Baek Si-hwan accompanied him this time, pulling the luggage cart in place of Hong Yu-geon and Van Hester.
The pair had received separate orders from In-hyuk at their layover in Los Angeles and headed elsewhere. He had deliberately offered no explanation for their independent movements.
“Director, the group headquarters keeps calling.”
“I’ve already given the other employees their instructions. Ignore it.”
“But…”
“The chairman has fully delegated that matter to me. It doesn’t matter what anyone says, so leave it alone.”
Baek Si-hwan, serving as both executive secretary and bodyguard, wore a troubled expression.
As they entered the arrival hall, people holding placards came into view.
TAESHIN, HEAD OF DIVISION, MR. KANG
The signs were clearly searching for him. When In-hyuk walked forward, a blond middle-aged man who appeared to be in his fifties greeted him in English.
“Are you Division Head Kang In-hyuk from Tae Shin?”
“Nice to meet you, Mr. Mark Campbell.”
His fluent reply visibly relaxed the man’s face. He had been worried the conversation might prove difficult after the initial greeting.
“I’m truly delighted as well. Please come this way. We’ve prepared a vehicle. Will you be heading straight to your lodging?”
Mark Campbell ran a company called GreenByte Labs. Its current operations were far from healthy, and In-hyuk had come to evaluate an investment in the struggling firm. That was why Campbell maintained such a deferential attitude.
“No. Let’s head directly to the company and begin due diligence. How long will it take?”
“Right now? But we haven’t prepared—”
Campbell could only stammer at In-hyuk’s abrupt decision.
“Does due diligence require preparation? Or am I only supposed to see what you’ve already readied?”
“N-not at all. Please, this way to the car.”
“No. We’ll rent one ourselves. Manager Baek.”
Baek Si-hwan, who had been momentarily dazed, snapped back to attention.
“…Pardon? You want me to go rent a car?”
“Is there anyone else here besides you, Manager Baek?”
They had switched to Korean, so Mark Campbell and the others couldn’t follow the exchange. Only the Asian man who seemed to be the interpreter understood a portion; he wore an awkward look.
“Understood. Wait at the entrance and I’ll bring a rental right away. It’s just ahead, so it won’t take long.”
Baek Si-hwan gave a slight bow and strode off quickly.
In-hyuk headed toward the airport exit with the rest of the group. After the interpreter explained the situation, Mark Campbell’s face clouded with discomfort.
“We have a vehicle ready for you… Have I made you uncomfortable in some way?”
“Not at all. I was involved in a serious car accident recently. It was tied to something rather dangerous, so I avoid using pre-arranged vehicles.”
“An accident? You don’t mean…!”
“Someone tried to kill me. Don’t worry—I’m not suspecting you. I simply prefer to be extra cautious.”
Before long, Baek Si-hwan pulled up in the rented car at the airport roadway. In-hyuk climbed in, and they departed immediately.
GreenByte Labs lay roughly ten minutes away by car. The sprawling three-story building that resembled a factory dominated most of the lot.
The moment Mark Campbell stepped out of the vehicle, he approached In-hyuk.
“Would you like to inspect the facilities and products currently in production first?”
“Yes. Let’s begin right away.”
Once inside, Campbell launched into a passionate explanation. Baek Si-hwan followed closely, taking permitted photographs and jotting notes where necessary.
After touring for nearly two hours, they finally entered the conference room.
“What are your thoughts?” Mark Campbell asked.
His expression made his high hopes for the investment obvious.
“Not bad. Still, one day isn’t enough to form a complete picture, so I plan to spend the next three days verifying further.”
“Three days?”
Even Baek Si-hwan, seated beside him, hadn’t known about this schedule. Surprise flickered across his face. He leaned in carefully and spoke in a low voice.
“Director, we also have the headquarters TF schedule. Staying here three additional days would be difficult.”
“Didn’t I say I left separate instructions for that?”
“But…”
“If you’re that concerned, feel free to return alone.”
To an outside observer, he would appear genuinely worried about the company. In-hyuk, however, understood his true motives better than anyone. Baek Si-hwan only pretended to care because he still wanted something from him.
Mark Campbell also spoke cautiously, his face etched with worry.
“To require three full days of inspection… Did the materials we showed fail to earn your trust?”
He had responded to the due diligence with considerable confidence.
In-hyuk had followed the explanation well and found it reasonable. Yet he had his own reasons for pressing the issue.
“I understand GreenByte Labs’ core business focuses on eco-friendly technology and low-power system development. You primarily manufacture power converters for smart devices, lighting, and HVAC systems.”
The precise summary drew a nod from Campbell.
“Correct. You’ve done your homework. As long as electronic devices remain in use, this is a field with genuine value.”
“I agree completely. However, Mr. Campbell, you poured capital into advancing converter technology to push beyond existing efficiency limits. That’s what led to your current management difficulties.”
He had pinpointed GreenByte Labs’ exact problems. The information wasn’t public yet and hadn’t appeared in Campbell’s presentation, so the CEO could only stare in shock.
“…You knew about that?”
“Information is impossible to seal off completely. Of course, I was somewhat disappointed that you tried to blame the management issues on rising defect rates in low-power memory and transistor production equipment.”
Cold sweat beaded on Mark Campbell’s forehead.
“I apologize for that. New technology rarely has a clear development timeline, so…”
“After concealing the facts and securing investment, did you plan to pour more money into it without any countermeasures?”
“That’s absolutely not the case. Our top priority was to reorganize the problems and production lines with the funds. New technology development would come afterward.”
The explanation carried a distinct note of rambling. In-hyuk swept his gaze across Campbell and the surrounding employees.
“My planned investment is fifty million dollars in the first round. Do you believe the value I described exists in what you’ve shown me so far?”
Mark Campbell reacted with visible shock and fired back urgently.
“Fifty million dollars? Are you serious? I understood the initial proposal was for ten million…”
Even ten million represented an enormous sum for GreenByte Labs’ situation. That was why Campbell had exerted every effort to accommodate In-hyuk until now.
“I evaluated GreenByte’s worth based on what I saw directly. Yet you begin like this…”
Campbell’s face stiffened. Memories surfaced of investors who verbally promised funding only to play games with the numbers. In extreme cases, they had even tried to extract vital technology under the guise of investment. In-hyuk’s words therefore landed like poison rather than honey.
“If we had explained everything properly, would you truly have invested fifty million dollars?”
“Why? In your view, does GreenByte lack that level of value?”
“That’s not it at all. But I’ve grown sick of empty investment promises. I acknowledge our side bears considerable fault. Failing to disclose everything from the start was a mistake. Still, doesn’t Division Head Kang In-hyuk probing us in this manner cross a line?”
Questions flew back and forth instead of answers. In-hyuk had never expected Campbell to maintain unconditional deference regarding the investment.
Of course, he already knew exactly why the CEO was reacting this way.
“I hold significant interest in the new low-power, high-efficiency transformer GreenByte is developing—one targeting a ninety-percent reduction in power consumption. Fifty million dollars in the first phase, another fifty million in the second. I intend to invest a total of one hundred million dollars.”
The sum equated to roughly one hundred forty billion won. Both Campbell and his employees reacted with open astonishment.
The shock stemmed from more than just the amount. In-hyuk had identified the exact nature of their confidential new technology.
“How… where did you learn about that?”
“I maintain fairly strong information channels. In any case, I’m deeply interested in that technology. I’ll spend the next two days confirming there are no other issues, then make my final decision. Any objections?”
Frowning, Mark Campbell glanced toward the executives responsible for finance, operations, and technology. Their eyes conveyed a collective willingness to trust him one more time.
“What you saw today covers nearly everything we have at GreenByte Labs. What more do you wish to verify? Surely you don’t mean to examine our technical designs…”
In-hyuk cut him off.
“Expenditure approvals and financial statements for the past three years, audit reports, tax filings, debt and credit histories, R&D activity documentation, defect-rate audit reports for both in-house and subcontracted component production, sales orders and approval forms, export-import declaration certificates, and personnel evaluation records for every employee. I’ll provide a separate list for the rest.”
The faces of the CEO and his staff filled with even greater shock than when they had first heard the investment figure.
“…All of it?”
“These are the basic documents required for proper investment verification. I’ll begin a detailed review tomorrow, so please prepare them. And this isn’t a probe. I believe in this company’s value and simply want to establish clear justification for the investment.”
Mark Campbell considered for a moment, then set his jaw.
“Understood. We’ll prepare everything for your review starting tomorrow morning. However, three years’ worth of records is substantial, so we cannot ready it all immediately.”
“I’ll review them sequentially. Just ensure none of the materials contain hidden information like today.”
“I will keep that in mind.”
After concluding the discussion, In-hyuk left the building with Baek Si-hwan. With nothing further to examine at GreenByte Labs for now, they headed straight to their accommodation.
Baek Si-hwan approached cautiously.
“The company appears to have many issues… Do you truly intend to spend three days here?”
“Why? Does investing in this company seem reckless to you?”
“Honestly, I don’t understand it. Moreover, committing a hundred million dollars… Headquarters will raise objections using profitability and other factors as leverage.”
In-hyuk knew precisely what worried him. Yet he understood far better what events would unfold next.
“I didn’t bring you along to hear such opinions. Simply organize the details of what occurred here. Also, bring the car.”
When In-hyuk cut him off, Baek Si-hwan fell silent and walked toward the vehicle.
They reached a five-star hotel roughly fifteen minutes away.
“I’ll rest for a while. I won’t need to call for you, Manager Baek, so handle matters as you see fit.”
“Will you not have dinner?”
“I’ll manage on my own.”
In-hyuk entered the room and closed the door at once.
Baek Si-hwan exhaled softly, then entered the room prepared across the hall. He checked the windows and interior for anything suspicious, then retrieved a phone hidden beneath the sofa near the window.
Someone had left it there in advance.
He powered it on with practiced ease and dialed a number.