September 6, 2018 at 8:47 am #67236
Due diligence is an integral part of the transaction process extending to certain activities in post-merger/acquisition. It is no longer seen as data/document verification or tax/regulatory compliance or recommendation of how to incorporate necessary clauses in SPA. It also attributes to the evaluation of post-acquisition investments and identifies areas for procurement of synergies. Therefore, it is not ended merely at the production of due diligence report. What have you recently came across regarding any new trends in the focus of performing due diligence?September 18, 2018 at 1:28 pm #67764
I feel that long gone are the days of getting a standaridised due diligence format and apply it across the board for all industries and companies. Nowdays, it is very important to have a customised due diligence checklist and that is where an M&A expert can differentiate himself from others.September 19, 2018 at 2:05 pm #67804
Hey, don’t know if this answers your question in the way you want it but I’ve experienced cultural differences in dealing with DD. I highly regulated countries (US especially) the process gets delegated to external resources (also expensive) who charge by the hour. These consultants can basically kill the timeframe and therefore the deal. In other cultures (w/o heavy regulation ans jurisdication) thr beauty of the deal itself is in the foreground. Also, the more money there is (and there is lots right now) the more auctions are bneing used. As there are always many people in the process, DD tends to get more loose. Just my 5 pennys;)October 10, 2018 at 12:51 pm #68863
my experience is the increasing of the HR, PMI part and the required planning of a realistic PMI plan. The numbers are the base of the deal (and the DD) but the chance to realize the expectations is directly related to the people and the long term planning. Not sure, if it could be called a trend, but I see in a lot of cases.February 13, 2020 at 6:24 pm #106567
Eneko Ferrero MartínParticipant
Agreed with you mates. But I think that sometimes this procedure is wire and confidential so as management tools, a framework for the DD could be the best.April 14, 2020 at 7:44 am #109409
Hi. In all honesty, Covid19 has proven how robust companies are int he time of crisis.
the new trend which i I am hoping to see is:
1. Checking cash reserves- the company ability to pay liabiities, how long can the compan afford to ustain the business
2. IT solution – what happens when all are asked to work from home. Are the compaany IT solutions sufficient to sustain the process
3. How quickly the company can adjust its business model in the crisis situation.May 5, 2020 at 4:55 am #109834
I also should say the increasing involvement of the HR DD through PMI… Everyone has started to realise the importance of the people factor which directly correlates to any successful M&A.
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