Due Diligence

A dynamic set of activities involving working with many unknowns identified via an iterative process & addressed when
the acquirer takes eventual control of the target
Improve/Validate
Valuation Model & Deal
Typical Due Diligence Issues Value Drivers
Structure
• Early capture and realization of synergies from the Products Financial
transaction Markets
Customers Commercial
Tax
• Uncertainty around target management’s claims
Capabilities Improve Synergy
on growth Operations
Culture
• Stability of customer base ROIC
• Accelerating time to close IT
Risk
• Tax and accounting structuring Technical
Tax Develop Additional
• Internal control structure Negotiating Leverage
Due
• Effect of regulatory matters on a target company’s Human Capital
Diligence
industry Process Risk Management
• Identification and quantification of tax exposures Provide Feedback
on Acquisition
and optimization of related benefits Forensic /
Value drivers Investigative Agreements
• Employee benefits, information technology Services
determine price and
systems and risk management practices
structure of the
• Benefit plan funding and liability exposures transaction and define
Legal
Legal Identify, Assess
the nature and the & Minimize Risk
scope of due diligence
Our experience shows that it takes a well organized
and executed, multidisciplinary approach to due
diligence, focused on validating value proposition assumptions, understanding risks and providing actionable feedback
Due Diligence
Due Diligence objectives, activities and outputs can be segmented into three stages within the Investment lifecycle