Chairman's Message
By Jim Jeffries, Chairman, M&A Leadership Council

In my mind, there are two primary purposes to due diligence in M&A: 1) confirming or validating the historic financial performance of the business, and 2) predicting what the future performance of the combination will be via the assessment of the “fit” and marketplace.

I see too many companies getting all wrapped up in financial due diligence (history).  In plain English, this portion of diligence is a financial accounting analysis of a business to analyze and report its recurring rate of earnings, working capital and other key financial metrics.  In short, you want to validate the financial state of the target and confirm the historic performance of the business.

Potentially more important are the other areas of due diligence that need more focus for fit and value creation:  tax strategies, information technology, human resources and culture, operations, legal issues and other areas that will require integration decisions.

In our “Art of M&A Due Diligence” training programs, experts bring to life both the art and the science of the best practices leveraged by today’s best acquirers.  Best acquirers learn to properly validate a target’s history while predicting the future state of the combined business.

Please consider joining us for The Art of M&A Due Diligence.  In this unique workshop environment, you'll learn from M&A experts with diverse insights and experiences, along with getting opportunities to network with your peers. 

Hope to see you there,