DD – Does it simply confirm a decision already made

This topic contains 2 replies, has 3 voices, and was last updated by  Johanna Breinesberger 1 week, 6 days ago.

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  • #115967

    Clifford Newton
    Participant

    I’ve been involved in several due diligence cases and in everyone the obvious conclusion was not to purchase, yet the owner had already made up their mind regardless. I therefore question the need for the activity.

    #116063

    Mandana Javaheri
    Participant

    That shouldn’t be the case although I have experienced few acquisitions where the DD was done after the decision was made. In my opinion the DD should drive the decision not the other way around

    #116236

    I agree with the observation Clifford has made – if a CEO/owner/investor wants to buy a company, they often will, even if the DD results strongly suggest to move away from the deal. There is a lot of ego coming in the way.
    Here the decision makers have to work on themselves and set thresholds in the beginning what their absolut minimum requirements are.

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