Chairman's Message
By Jim Jeffries, Chairman, M&A Leadership Council
As it is with M&A Integration, effective due diligence is both a science and an art form in today’s challenging business climate.
Science: A systematically organized body of knowledge on a particular subject.
Art: The application of human creative skill, imagination or experience.
The science of M&A due diligence has created a substantial body of knowledge around the practices of financial due diligence (income statements, balance sheets, working capital, quality of earnings, legal and tax issues) and the knowledge continues to grow with advancing cross-border dealings and deal types. However, the current state of today’s financial due diligence practices by most companies still lack the nuance techniques and technologies that can enable more sophisticated, deeper and more detailed findings. Additionally, the best practices for diligence go far beyond the historical financials of the target company. It is critical that the team gain clarity as to the operational and cultural fit when creating the combination.
The Art of M&A differs from Science of M&A. The art requires dealing with the non-traditional, unknown conditions and circumstances the buyer may discover and be able to deal with them effectively and efficiently. If the science of M&A is knowledge; the art of M&A is wisdom. Wisdom comes only from experience and multiple cycles of learning. There is much more to learn and do in today’s increasingly complex world of merger and acquisition due diligence.
The Art/Wisdom of M&A Due Diligence is on display at our workshop The Art of M&A Due Diligence, featuring experienced professionals from BDO, Willis Towers Watson and M&A Partners. Check out future Art of M&A Due Diligence events to learn about financial, operational and cultural diligence. You will also have the opportunity to explore the newest requirements for cybersecurity and social media due diligence.
We hope to see you soon,
