Thursday 24 January 2008

Really get to know the target company before determining the most effective Merger & Acquisition team.

Brand Killer Robots reveal::
Did you ever find yourself in one of those meetings where the top man announces that he has seen fit to move the business in a different direction and that there would be all change at the top? Were you there when he mentioned that the new owners would be parachuting a team of due-dilgence experts into the business, to conduct health checks, prior to any agreement being made? Were you there when the questions were served to the senior management team? How about after the auditors left the room and the managers fell about laughing at how lame the questions had been.

Crikey, thank F*** they didn't ask us about X, one manager exclaimed. Another falling about, said - if they only knew!

It is obvious that not every dimension of the business can be evaluated, but so too is it clear that due-diligence teams should be more than a bunch of world-roaming accountants and the odd lawyer or two.

Unless due care and attention is taken over selection of the DD team - Mergers & Acquisition Specialists will be not be in a position to advise clients appropriately.

Our advice to M&A specialists is... really get to know the target company before determining the most appropriate M&A team. Don't just fly in Whizz kids who don't understand the territory.

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