How to achieve knowledge transfer between the Due Diligence team and Post Merger Integration team if most of the Due Diligence workstreams are external and integration will be done by an internal team?
When working on the PMI internal team, we request that we are present during due diligence. We do not always need to necessarily get into all the details of due diligence but we ask for updates and for the team to highlight anything they deem important for us to know. We also ask to sit in and listen to any all in call that they may have so that we are able to ask questions and understand the overall strategy.
This is why we manage acquisitions and due diligence in house. There seems to be too much inefficiency caused by allowing outside teams to run due diligence. That said, I think that regular debriefs from the external team on what they are finding, red flags and issues to be addressed would be helpful. This could be done by starting the integration team meetings prior to close and including both the internal and external teams in those meetings. In addition, a standard checklist or playbook for integration that includes line items for knowledge transfer and specifics around what they should look like could be helpful.