Topic 10

“Concern Capture” Due Diligence

This topic presents the essentials of the critical due diligence process that buyers must undertake with each deal. The due diligence process must focus on concern capture at every turn—some concerns you have from the start, some you find along the way. Due diligence is about finding out what you do not know about the target, confirming what you may know, and synthesizing the knowledge acquired in terms of the significance of the information, what you should do about it, and how it affects the process of doing (or not doing) a deal.

Due diligence provides the background knowledge critical to completion of the acquisition criteria evaluation presented in Topic 4. This topic provides complete due diligence worksheets focused on typical concern issues for each business function to enable readers to jump start the due diligence activity.

The reader is encouraged to take the time to read the text in conjunction with the referenced Appendices to gain the appropriate level of understanding of the subject matter discussed in the narrative. Appendices are either presented at the end of this Topic or are available for review and download on the companion Web site noted at the end of this Topic.

DESCRIPTION OF THE DUE DILIGENCE PROCESS

  • The due diligence process is an intense, focused effort of discovery about the target company.
  • The truth is in the details so take the time to find it.
  • Read, interview, discuss, listen, and read some more.
  • Ask why, ...

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