See the wood
Due Diligence is an involving task, where the old idiom ‘…can’t see the wood for the trees’ is true.
It is very easy to get immersed in the detail of a transaction – checking that balance sheets balance, existence of assets, invoices are not shredded etc etc. However most value from the DD process is derived from standing back and pondering – is my client getting a good deal?
Before you embark on detailed financial due diligence, I wholeheartedly recommend you spend half a day with your accountant and your offer letter (or heads of agreement). Not only will your accountant be able to independently appraise the all important headline figures associated with the transaction, but this will also allow you to identify risk areas together – ensuring a more focused DD process.
Oh and by the way, it is useful to review the ‘wood’ element before a not insignificant fee has been agreed with your accountants and lawyers.
Date: 22nd August, 2007
Articles from this Author
15th January, 2015
Residential Service Charge accounts
7th August, 2009
Capital redemption reserves - purchase of own shares out of capital
11th February, 2009
4th February, 2009
Companies Act 2006 - Articles of Association
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole