Due Diligence
Acquiring, merging and partnering other companies is a major way for companies to grow, obtain skills that they don't hold, to diversify and to enter new markets. Mergers, acquisitions and joint-ventures are an important element in corporate strategy.
At the same time, many such mergers and acquisitions fail. They fail - not because the financials were wrong - but because of a hidden problem that was not but should have been found before any agreement was signed. This may be a cultural mis-match - or it could involve incompatible business systems. The result will be major integration problems for the two firms costing much more than anticipated. Just as damaging are other off-balance-sheet type problems. These can range from legal issues, poor staff morale, customer dissatisfaction, supplier problems, and many more. Focusing on finances, and apparent product or market fit as a rationale for agreeing the merger is unlikely to catch such problems. If present, such unexpected problems can prove extremely costly.
We will research the market, the company and its business environment - speaking to customers, suppliers, current and ex-employees, neighbours and anybody else likely to know about what is really going on within the target organization. The aim is to find out what the target organization would prefer you not to know - or perhaps doesn't even know itself.
Our due diligence services are aimed at helping you find any such information - positive and negative. They complement the work of the financial analysts, the legal experts and others involved in helping you make your decision or negotiate a price.
All research is conduced using a strict ethical code that will guarantee confidentiality - so you won't need to worry that information could leak out or that plans get revealed prematurely.