Due Diligence

The global recession that gripped the world since 2008 is showing signs of improvement. Companies that weathered the storm are finding opportunities to merge with or buyout competitors. Analyzing a company as part of a transaction sometimes requires an outside perspective coupled with disciplined research and analytical techniques. Countless large mergers and acquisitions have failed to achieve projected cost savings, synergies, or growth potential for the combined entity. Many issues related to these failed acquisitions can be traced back to the due diligence phase of the M&A transaction. Developing a realistic “playbook” for all affected units of both companies, before the conclusion of the transaction, can increase the probability of a successful merger or acquisition. The proper due diligence also allows management to properly value the transaction while assessing risk. Deep industry experience combined with quantitative analysis skills are determining factors for the success of any due diligence process.