Getting Due Diligence Right

Michael BENOLIEL, Singapore Management University


The record of mergers and acquisitions investments, from the perspective of the corporate acquirer “has been dismal” (Aiello & Watkins, 2000: 101). Clearly, there are many reasons as to why such transactions fail. It seems, however, that the main reason is related more to failures in due diligence than to other lapses in the other part of the deal process (Aiello & Watkins, 2000). Successful deal makers have a disciplined due diligence process and a clear negotiation thesis. They know precisely what value they must get from the deal, how the 2 deal-design would create that value, and thus focus like a laser beam on negotiating that value.