Mergers & Acquisitions Integration Handbook, 2nd Edition

CHAPTER 6The Importance of Due Diligence

In this chapter, you will learn:

• The goals for the due diligence phase of integration planning
• Tips for managing the due diligence process
• A summary of the numerous documents you should consider for your due diligence assessment
• An approach for IT integration diligence
• The impact of AI on due diligence process
• Assessing integration debt as part of due diligence

Due diligence officially occurs prior to closing (though sometimes key activities may have to be finished post-closing but that’s not preferable). In the due diligence phase, integration leaders need to be highly engaged and preparing for the deal to close in anticipation of the integration’s official start date.

For most M&A transactions, the due diligence phase may necessitate the creation of a virtual data site (VDR or virtual data room) for the housing of sensitive documents crucial to the deal’s integration planning. Access to such a data room would be restricted; minimize security breaches during this critical phase so there is no leakage about the potential deal.

VDR solutions are the norm for most transactions these days. In fact, there are several varieties of VDR applications on the market. Exploring the VDR solutions options at the front end of your due diligence process so data can be stored and exchanged during the integration without security concerns is a must.

Following are some features to look for if you are tasked with securing a VDR solution:

• Security and ...