restructuring done, time to grow now

Co-Investor have had nearly 3 years with CMO and it looks like it has finally finished all its restructuring (write down of assets, cost cutting, selling-off Mobile division, debt reduction). Now it is time to grow the business and they have started with the acquisition of dgm, which on the surface looks like a good acquisition at a reasonable price.

I know someone who works at Software of Excellence, (SOE.NZ), the NZ-based dental software company that Co-Investor was a major shareholder in. CMO looks very similar to the SOE story, below:

2004/5 - Co-Investor becomes 20% shareholder in SOE at about $1.00.
2005/6 - SOE posts losses mainly due to writedown of assets. It also sells its struggling US division, buys back some shares and acquires Australia's leading dental software company, Oasis. It also trys to grow in Europe by sending a Co-Investor analyst to Europe for 6 months to analyse/talk to all the Euro software companies for potential merger/acquisition targets.
2007 - SOE posts a net profit of $4m+ and initiates a takeover offer to a major US dental firm, Henry Schein, at $2.90.

That is Co-Investor's game plan - buy into struggling small-cap, restructure/retrun to profitability, then flick off within a 3-5 year time frame and aim to at least double their money. I am convinced that Co-Investor will do the same here. ie they will pull all the strings, have their analysts crunching all the numbers of all the global companies in the digital performance space, and grow CMO/DIG is much as they can before initiating a takeover for the company. They seem to be on the right track but it has taken a bit longer for them to get CMO moving.