Denis Reinhardt
In this blog post, we continue the discussion about the important role of due diligence in M&A transactions. As already mentioned, this is a resource-intensive and highly relevant stage. Time pressure can lead to mistakes. An M&A advisor as an additional control instance not only provides support in project management and the control of due diligence, but also in terms of data quality and external perspective, which creates added value for shareholders.
Reviewing documents to ensure high data quality
Providing a large amount of information in a short period of time carries the risk that quality will suffer under time pressure. Consistent storytelling, factually correct information, and potential contradictions are possible problems. As a consultant, i-capital can provide support here, offering an external perspective and providing an overview from a helicopter view. Operational teams often lose sight of the big picture during due diligence, and an external view helps to correctly classify and explain new information.
Experience in providing relevant information
The selection of information provided is crucial. Experienced external consultants filter and prepare information tailored to the target audience. This gives potential buyers a quick and comprehensive insight into the company’s situation, saving further rounds of questions and thus time.
External perspective for target group-oriented communication
Operational blindness is an aspect that must be taken into account. Explanations that are clear to specialist departments may raise more questions than answers for external parties. In addition to structuring and clarifying information, classification is also essential. An external perspective and sparring with consultants can help with this. Practical experience and routine allow the background to questions to be assessed in advance, enabling efficient responses tailored to the target group.
Measures for saving time and money
The added value mentioned above applies not only within M&A processes, but should also be taken for granted outside of them. However, practice shows that the due diligence phase is carried out under particularly high pressure. This means that even the best working methods are put to the test. Hardly any other phase influences the outcome of an M&A process as much as due diligence. In the best case scenario, mistakes can be remedied with a lot of explanations and thus time, but in the worst case scenario, they can be punished with a lower purchase price.
Contact
Partner, i-capital
+49 151 143 396 02
