What gaps do you observe in DD process?

Viewing 13 posts - 1 through 13 (of 13 total)
  • Author
    Posts
  • #58735
    Woon Pheng Ong
    Participant

    In most M&A deals, financial, tax and legal DD is performed. However, other DD components (like HR, IP, IT and commercial DD) and are sometimes left out. What’s your experience?

    #60021
    Hamood Alhajri
    Participant

    during my humble experience , I would say, all the DD streams commence simultaneously.

    #60573
    caroline dussault
    Participant

    Also in my experience, that all DD Stream commence simultaneously.

    #61245
    Zain Athar Mirza
    Participant

    It is true that not all areas for DD are covered, always.

    #61665
    Cesar Otero Lucas
    Participant

    From my point of view and in my experience, it depends on the time we have for developing the DD process. That is our main enemy: time. So, in several cases we go on with the process without stopping and analyzing in a deeper way some key factor. These factor, are, for instance, Technical issues or Hr issues.

    regards

    César Otero

    #68470
    Jake Heimsoth
    Participant

    One common gap I see in diligence is the lack of thorough Cybersecurity & Privacy DD. With the recent increase in requirements to secure cyber insurance, this workstream is becoming increasingly important.

    #69503
    Kyle Kramer
    Participant

    I agree with Jake above. Usually IT Due Diligence is undervalued. Many smaller companies outsource their IT services and many times there are contracts involved which can get messy after a merger. There are also IT security standards that must be adhered to – which are often overlooked.

    #69692
    Emily Thompson
    Participant

    Woon, I posed a question related to this on cultural diligence, which I felt had been not highly prioritized in the last process my team completed, and I was wondering about how best to improve it moving forward. While we complete dilgience on all the streams you mentioned, I do think “cultural diligence” is a bit harder to wrap ones arms around and thus can get left aside, which is unfortunate as having complementary cultures can make (or break) life post acquisition. We can look at compensation and org charts from an HR perspective, and understand who hit their targets and who didn’t, but it doesn’t give us a great window into what drives the culture at the target.

    #69711
    Waleed Ghemlas
    Participant

    establish process to conduct workshop ahead of the DD commnecement to set proiroties and align all workstreams to focus on what matter to identify major risks findings and factor that into the development of the valuation.

    #70131
    Hugh Jones
    Participant

    HR DD and talent assessment is an easily overlooked but essential component of the DD process.

    #70204
    Martin Tse
    Participant

    I have to say that any DD I have done Internationally (outside of the US), I have relied on external consultants such as KPMG to look over anything related to GDPR and Cybersecurity policies.

    #70349
    Willem Moore
    Participant

    in my view the scope/focus of the DD is influence by geographical locations. E.g.
    Should one consider an Acquisition in emerging markets or Middle Eastern markets. I could have a different focus for “other areas of DD”

    Some examples:
    Various countries has different forms of local employment protection – it should be well understood to avoid penalties.
    Social dialog, ethics reporting practices…

    #70376
    Ahmed Fawad Muslim
    Participant

    I agreed Hamood, It works better if a structured approach is followed in a M&A DD process.

Viewing 13 posts - 1 through 13 (of 13 total)
  • You must be logged in to reply to this topic.

Are you sure you
want to log out?

Book a Demo

Book a Demo

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!

Request a Brochure

Request a Brochure

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!

In order to become a charterholder you need to complete one of the IMAA programs