Mergers & Acquisitions
Due-Diligence beyond the Numbers!
As a general definition, due-diligence for M&A is a process of acquiring objective and reliable information on a target company, prior to a decision to conclude the transaction. It is usually a structured, systematic process, gathering the critical facts and figures relevant to validate and justify the reasons to proceed or not.
'Hard data analysis indicates what has already happened - not what is about to happen in the future.'
However, whilst the typical hard metrics of a target organisation can be forensically scrutinised and validated, hard data analysis indicates what has already happened - not what is about to happen in the future. This is an important distinction and key ‘soft’ data aspects such as culture, leadership, inclusiveness, collaboration and other important aspects of an organisation's foundation and core values can indicate the future trajectory of the target organisation - and this is much more difficult to assess and quantify
It is critical therefore to include both hard data and soft data in the due-diligence process if the outcome is to be successful and sustainable. This is even more important with the level of M&A activity over the past few years and the expected activity in 2022 and beyond.
Making Truly Informed Data-Driven Decisons for M&A
Without including multiple types of data, it is difficult to go beyond the standard M&A checklist to arrive at a truly informed view and make important decisions that incorporate the full cultural picture of the target organisation. Predixa’s approach includes acquiring hard and soft data (internal and external), and benchmark data (where available), to develop a more complete picture.