Due diligence is one of the most important parts of executing any deal. Whether your firm is undergoing a Merger, Acquisition, IPO, or Strategic Investment, due diligence is the act of investigating a company to understand how they function down to the smallest details.
When investors talk about their need to see a real business plan, what they mean is this: we want to understand the fundamental strategy, logic and assumptions of how a business is going to invest capital and generate cash or value at a rate of return that will be consistent with the investor’s objective. We want to see the words and not just the numbers.Continue reading “The Business Plan Investors Like to See – The 4 Key Elements”
In my career of closing over 60 mergers and acquisitions and another 11 IPO’s, it has been my consistent experience that everyone thinks they are closer to closing a deal sooner than, in fact, they are. There is a universal denial of how long it takes to put together all the details of a successful transaction, as we always seem to underestimate the complexities of achieving traction and coordination. And the most complicated moving parts are usually human. Yet I have closed 100% of all transactions that reached a signed letter of intent. Continue reading “The Golden Rules of Closing a Deal”