The integration phase determines whether an acquisition creates lasting value or becomes a costly misstep. Protiviti’s Jim DeLoach shares essential questions boards and executives should ask after deal closure to ensure successful post-merger integration.
Last month, I discussed shifts in the due diligence process that are generating the need for more focused questions. Whether an acquisition is a standalone, complementary entity or an integration, the due diligence process is undergoing a paradigm shift due to the higher cost of funding and the impact of failed transactions on valuations. As a result, executive management and the board of directors should expect a more aggressive focus on due diligence.
The intent of last month’s article was to point out the most important, fundamental questions senior leaders and directors should ask during the due diligence process. It focused on the “primary asset” question: What are we actually buying? It summarized questions to ask during due diligence in the following areas:
The due diligence process focuses on identifying risks, confirming financial information and relevant facts, verifying critical deal points underpinning an investment opportunity, reviewing existing contracts and establishing a roadmap to address a transaction’s core issues via…