Due diligence3/17/2023 ![]() Systems for which management is dissatisfied.M&A IT Due Diligence Checklist Excerpt from IT Checklist And if they slip up in a crucial area, they could be haunted by the mistake for years. It has failed even before the ink dries on the deal.ĭue diligence teams must operate with limited information in a tight timeframe. In cases when the premiums paid are too high to be recouped, a merger is dead. Therefore, they are more likely to overpay. When acquirers miss red flags that signal serious danger, they enter deals unaware of what they are actually buying. The information collected and analyzed informs the decision to acquire, the terms and structure of transaction, and the post-acquisition plan. So much rides on the due diligence process. Shoddy homework on the front-end of a deal negatively impacts practically everything that follows it. Ineffective due diligence is the true culprit behind most acquisition failures. They receive an undue amount of blame for poor M&A performances. Given its unrivaled destructive power, due diligence is the phase in M&A where improvements will make the most dramatic impact on financial results.įaulty strategic thinking, executive hubris, incompatible cultures, and badly planned integrations get a bum rap. It wipes out more market cap than any other lapses in the entire acquisition process. Where Will Improvements in the M&A Process Make the Greatest Difference?Ĭomplications from poor due diligence make it the granddaddy of all merger mistakes. ![]() ![]() Step 11: Capture M&A Integration Lessons Learned.Step 10: Execute Acquisition Integration Plans.Step 9: Develop M&A Project Integration Plans.Step 8: Develop M&A Staffing & Retention Plans.Step 7: Develop M&A Communication Plans.Step 6: Develop M&A Culture Integration Plans.Step 5: Develop Post Merger Integration Risk Management Plan.Step 4: Provide Post Merger Integration Training.Step 3: Conduct Integration Management Office (IMO) Kickoff Meeting.Step 2: Determine M&A Integration Governance.Step 1: Define M&A Integration Strategy and Guiding Principles.
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