In practice, many DD’s require simultaneous actions from different professionals. Legal DD co-works with IP, patent and brand protection and environmental DD. Financial DD co-works with commercial DD, especially for the validity of the business plan as well as with Tax and Legal DD for the proper recognition of deferred taxation and provision for legal disputes.
What should be the proper strategy to organize a holistic approach keeping in mind that is not always easy the cherry picking of service from different professional especially when they provide a full range of services.
We are currently working on our M&A Playbook within HR and had a similar question especially in how we have a holistic approach to all areas (not just DD) since we aren’t responsible for them. We created a draft of our playbook outline and met with other groups to talk through our plan. If they didn’t have anything for their area, we asked if they wanted to be included in ours for consistency. If they had something already, we scheduled time to see how the groups intersect and what made the most sense for moving forward. We’re still having those discussions, but so far has been well received.
In my experience, the most beneficial and successful DD processes have a recurring meeting (timing is flexible based on deal deadlines, could be daily, weekly, etc.) when the leaders for each DD area report on current status and key findings and others are allowed to ask questions. This is a great way to collaborate and share information. I have participated in the meetings where various third-party service providers attend in person and give their own reports.
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