Acquisition Due Diligence: Starting Off On The Right Foot
- Topics:
- Management Buy out
- Tags:
- Acquisition,
- Business Operations,
- Corporate Law,
- Diligence,
- Finance,
- Investment,
- Mergers & Acquisitions
- Source:
- American City Business Journals
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Overview: Good due diligence begins even before an acquisition prospect is identified. The buyer should determine beforehand which characteristics are desirable and which are undesirable. The objective of due diligence is straightforward and simple. The acquirer is interested in minimizing its exposure to the many problems and pitfalls that can arise when making an acquisition. The process itself is decidedly less simple. The acquirer must begin with clear and explicit expectations of the benefits it hopes to gain by making the acquisition. Only by clearly understanding these expected benefits at the outset can the appropriate due diligence procedures be identified and efficiently carried out. It is critical to understand that due diligence is an essential part of any well-executed acquisition process. Due diligence is a structured, systematic research effort used to accumulate the facts necessary to make an informed decision regarding an acquisition candidate, thereby increasing the chances of the acquisition’s success.
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Format: HTML | Date: Jan 2003 | Pages: 1
