Our approach to doing pre-acquisition due diligence follows
three key principals:
Purchase price and terms are the most
important factors in ultimate returns to investors. We treat
the diligence and assessments with this priority and behave
as if we were investing our own monies.
True “business due diligence” is much
more important than completing a predetermined
due diligence summary
checklist. Investors need to understand the key areas of
opportunity and risk and the likelihood of meeting
post-acquisition projections. Sometimes this information is
qualitative and intuitive rather than quantifiable.
Speed and cost. Timing is always critical with M&A
transactions. We respect the need for speed and spend
focused effort on the areas that will most likely impact
opportunity or risk.