Due Diligence in M&A 101: Lessons from Landmark Deals

Abstract

In this project we take a multi-faceted approach to examining due diligence. We have chosen to utilize multiple types of case studies that correspond to the four main areas of due diligence. The purpose of utilizing multiple cases is to better understand how the process of due diligence varies and the significance of the various categories of due diligence within each functional area. Each functional area requires different criteria for evaluation, different risk factors, and different measures or indicators of success or failure, which may not always be the same in each transaction. By including five successful and unsuccessful cases for comparison, we can provide an overall structure to our study while providing a more in-depth analysis of the specific drivers of success or failure within that functional area. For example, a case that is successful in financial due diligence may not always provide a positive indicator of human resource issues, or vice versa. By utilizing this research approach, we have also decreased bias and increased the reliability of our findings through a wider base of documented evidence.