Due Diligence Reviews

Negotiation and due diligence reviews for acquisitions

Develop a strategy for an acquisition/divestiture. Most of the value unlocked by acquiring a business depends on:
- the strategy developed for the new business and
- a detailed implementation plan so that the business does not just "continue as before"
Strategic acquisitions require a detailed strategy and action plan to be implemented to ensure that the goals set by the target company are met and exceeded
Busy managers often do not set in place the steps necessary to meet the vision that motivated the CEO to enter into the transaction
Negotiation of terms of acquisition/divestiture
A due diligence review is an in depth review of the business of the target company. Some of the benefits of performing a due diligence review are:
Minimize the risk of unpleasant surprises
Verify the assets to be acquired
Establish the liabilities included in the acquisition, especially those that are contingent or difficult to quantify or otherwise not disclosed in the financial statements
Verify that business is what you were "sold" i.e. search for unexpected and/or undisclosed issues that may affect the business post acquisition
Although often a due diligence review is done by the acquiring company, there are many other scenarios that require a due diligence review. E.g:

Liaison with lawyers, tax specialists, accountants and other professional advisors
Post acquisition implementation of strategy
A comprehensive due diligence review will be based on business expertise supported by a checklist that covers at least the following areas where applicable: