External advisors in due diligence
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Should the external advisors be left alone without supervision and without being accompanied by an internal, experienced M&A Project Manager during the due diligence phase? I think not. I beleive the experience that an internal project manager will take from supervising and getting involved in the due diligence phase and from participating in the interviews with the target’s managers is valuable not only for the due diligence findings but also for pre-designing post merger integration appropriately.
Hi Areti. I agree – generally external advisors should be operating at the direction of the internal M&A team. However, it also depends on the sophistication and experience of the advisors. If they are from a very reputable firm (Big Four Accounting Firms, Bain, etc.) and have sufficient experience, then once the M&A team is comfortable, the advisors can operate somewhat independently. Always have to be mindful of confidential information distribution and sharing around external advisors.
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