- This topic has 8 replies, 9 voices, and was last updated 6 months ago by .
Viewing 9 posts - 1 through 9 (of 9 total)
Viewing 9 posts - 1 through 9 (of 9 total)
- You must be logged in to reply to this topic.
Usually, M&A transactions come in a limited timeline and limited data as well. Usually, one of the findings in each due diligence area is a limitation in data and uncertainty in different aspects.
My question is how to protect the buyer or minimize the impact of the uncertainty?
By understanding the business that you are going in and (the complete value chain) as well as understanding how each potential scenario of “uncertainty” could impact the business.
the more DD you do, the more you can reduce uncertainty and its impact
Uncertainty is major reason of failure in M&A deals. We use lots of assumptions in valuation and synergy modelling. We should not ignore human factors in post merger integration which don’t have unique mathematical models. We can’t eliminate uncertainty, we only can reduce uncertatities and shift consequences from fatal errors to correctable errors. We should have solutions for all probable cases based on probability of occurrences
DD may also provide insights on how to mitigate uncertainties. During the DD you will discover various issues and risks – knowing them is the first step in mitigation.
Deal flow slows down but valuation holds steady
A shift towards regionalism builds gap in bridges
Alternative deal structure becomes common place
The buyer is protected by appointing independent consultants who have deep experience in managing and examining the due diligence process.
I agree – normally, companies can’t really do the due diligence by themselves. One of the “consultants” they can hire are the investment banks that can coordinate the due diligence with the lawyers, accountants etc.
Really informative post here, and some great responses.
Trainings
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
In order to become a charterholder you need to complete one of the IMAA programs