The modern Acquirer tends to rush through its acquisitions with an emphasis on the speed of income accretion.
But this haste is one of the principal reasons that so many acquisitions do not fulfill the hopes of their proponents within the Acquirer. Insufficient attention to detail and to cultural blending easily ruins the logic of an acquisition. Synergies need more than a good idea: they need careful execution.
Completion of organized due diligence is a key part of an M&A deal’s success. The Acquirer is best served by thorough and complete documentation organized around the Due Diligence Checklist into what is referred to as a Due Diligence Memorandum.
This Memorandum typically includes similar headings and a similar organization to the original Due Diligence Checklist, and discloses and summarizes what was located during the Acquirer’s legal due diligence.
The final Due Diligence Memorandum and other results of the due diligence need to be transparent to all in the Acquirer, and not just those who participated in the deal. Acquirer representatives there now need to be able to understand what happened, as do those who will come later.
Unclear decisions taken at the time of an acquisition can be torture to work through for those who follow years down the road.