{"product_id":"due-diligence-isbn-9780470375907","title":"Due Diligence","description":"This nuts-and-bolts guide examines all aspects of an M\u0026amp;A due diligence--from coming to the decision to acquire a company, to who should be on the due diligence team, to the actual process and the final report and post-closing follow up. It advocates a focus on both risk mitigation and shareholder value creation, and emphasizes a holistic approach that spans from planning to post-acquisition integration. The tentative contents is: (1) Introduction; (2) Planning for value creation: growth strategy; (3) Engagement and pursuit; (4) Preparing for due diligence; (5) Validation of value: performing due diligence; (6) Assessment of due diligence results; (7) Optimizing value: post diligence negotiation; (8) Extracting value: post-transaction integration. \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eStep-by-Step Guidance xiii\u003c\/p\u003e \u003cp\u003eOrganization xiv\u003c\/p\u003e \u003cp\u003ePlanning xv\u003c\/p\u003e \u003cp\u003eInvestigation xvi\u003c\/p\u003e \u003cp\u003eExecution xvii\u003c\/p\u003e \u003cp\u003eAbout the Authors xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One Planning 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview 3\u003c\/p\u003e \u003cp\u003eMergers and Acquisitions: A Way of Corporate Life 3\u003c\/p\u003e \u003cp\u003eMixed Results 6\u003c\/p\u003e \u003cp\u003eAcquisition Risk and Due Diligence 7\u003c\/p\u003e \u003cp\u003ePreventable Causes of Failure 10\u003c\/p\u003e \u003cp\u003eMyopic Approach to Due Diligence 11\u003c\/p\u003e \u003cp\u003eReacting to Deals 11\u003c\/p\u003e \u003cp\u003eCompartmentalized Behavior 13\u003c\/p\u003e \u003cp\u003eInactionable Findings 13\u003c\/p\u003e \u003cp\u003eExclusive Focus on Risk Mitigation 14\u003c\/p\u003e \u003cp\u003eKey Success Factors 14\u003c\/p\u003e \u003cp\u003eHolistic View of Due Diligence 14\u003c\/p\u003e \u003cp\u003eGrowth Strategy 15\u003c\/p\u003e \u003cp\u003eIntegrated Management 15\u003c\/p\u003e \u003cp\u003ePurposeful Action 16\u003c\/p\u003e \u003cp\u003eValue Orientation 16\u003c\/p\u003e \u003cp\u003eDue Diligence and Value Creation 16\u003c\/p\u003e \u003cp\u003ePlan to Create Value 16\u003c\/p\u003e \u003cp\u003eStrategic Purpose 17\u003c\/p\u003e \u003cp\u003eValue Drivers 20\u003c\/p\u003e \u003cp\u003eKey Risks 23\u003c\/p\u003e \u003cp\u003ePurposeful Behavior 24\u003c\/p\u003e \u003cp\u003eKey Points 25\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Planning for Value Creation: Growth Strategy 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 27\u003c\/p\u003e \u003cp\u003eCentral Role of Strategic Planning 27\u003c\/p\u003e \u003cp\u003eChapter Focus 28\u003c\/p\u003e \u003cp\u003eThe Strategic Planning Process 29\u003c\/p\u003e \u003cp\u003eManaging the Process 30\u003c\/p\u003e \u003cp\u003eCharacteristics of an Effective Planning Process 31\u003c\/p\u003e \u003cp\u003eProcess Overview 32\u003c\/p\u003e \u003cp\u003eStrategic Assessment 32\u003c\/p\u003e \u003cp\u003eMarket Targeting Process 33\u003c\/p\u003e \u003cp\u003eInvestment Objectives 34\u003c\/p\u003e \u003cp\u003eMarket Expansion 35\u003c\/p\u003e \u003cp\u003eVertical Integration 37\u003c\/p\u003e \u003cp\u003eInfrastructure Improvement 38\u003c\/p\u003e \u003cp\u003eInvestment Alternatives 38\u003c\/p\u003e \u003cp\u003eCharacteristics of Investment Types 39\u003c\/p\u003e \u003cp\u003eBackup Planning 45\u003c\/p\u003e \u003cp\u003ePlan Outputs 46\u003c\/p\u003e \u003cp\u003eConclusion 51\u003c\/p\u003e \u003cp\u003eKey Points 51\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Implementing the Growth Strategy 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrom Identification to Pursuit 53\u003c\/p\u003e \u003cp\u003eChoosing an Acquisition Strategy 53\u003c\/p\u003e \u003cp\u003eWinnowing Process 54\u003c\/p\u003e \u003cp\u003eIdentification 58\u003c\/p\u003e \u003cp\u003eMarketplace for Acquisitions 58\u003c\/p\u003e \u003cp\u003eIdentifying Prospects 59\u003c\/p\u003e \u003cp\u003eQualification 64\u003c\/p\u003e \u003cp\u003eStrategic Fit 64\u003c\/p\u003e \u003cp\u003eAvailability 66\u003c\/p\u003e \u003cp\u003eEngagement 67\u003c\/p\u003e \u003cp\u003eProactive Engagement 68\u003c\/p\u003e \u003cp\u003eRole of Management versus Intermediaries 70\u003c\/p\u003e \u003cp\u003eConfidentiality of Information: Nondisclosure Agreement (NDA) 70\u003c\/p\u003e \u003cp\u003eReactive Engagement 71\u003c\/p\u003e \u003cp\u003eAssessment 73\u003c\/p\u003e \u003cp\u003eNotification\/Approval Document 73\u003c\/p\u003e \u003cp\u003ePlan to Create Value 76\u003c\/p\u003e \u003cp\u003ePursuit 78\u003c\/p\u003e \u003cp\u003eTransaction Framework: Sellers’ and Acquirers’ Different Perspectives 79\u003c\/p\u003e \u003cp\u003eTaking Action: Assembling the Core Acquisition Team 81\u003c\/p\u003e \u003cp\u003eKey Points 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Investigation 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Preparing for Due Diligence 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 87\u003c\/p\u003e \u003cp\u003eDue Diligence Reviews 88\u003c\/p\u003e \u003cp\u003eChapter Focus 89\u003c\/p\u003e \u003cp\u003eEnvironmental Factors 90\u003c\/p\u003e \u003cp\u003eExternal Constraints of the Sale Process 90\u003c\/p\u003e \u003cp\u003eInternal Limitations of the Acquirer 92\u003c\/p\u003e \u003cp\u003eNature of the Target Company 92\u003c\/p\u003e \u003cp\u003eImpact of Environmental Factors on the Review 93\u003c\/p\u003e \u003cp\u003eCreation of the Due Diligence Team 93\u003c\/p\u003e \u003cp\u003eIntroduction 93\u003c\/p\u003e \u003cp\u003eComposition of the Due Diligence Team 94\u003c\/p\u003e \u003cp\u003eA Caveat 97\u003c\/p\u003e \u003cp\u003eOther Considerations 97\u003c\/p\u003e \u003cp\u003eInitial Preparation Measures 98\u003c\/p\u003e \u003cp\u003eDevelopment of the Due Diligence Program 99\u003c\/p\u003e \u003cp\u003eProgram Development Process 99\u003c\/p\u003e \u003cp\u003eKey Aspects of the Due Diligence Program 100\u003c\/p\u003e \u003cp\u003eObjectives, Procedures and Findings, and Recommendations Illustrated 103\u003c\/p\u003e \u003cp\u003eA Due Diligence Mind-Set 105\u003c\/p\u003e \u003cp\u003ePlanning Due Diligence 106\u003c\/p\u003e \u003cp\u003eFinalize the Program 106\u003c\/p\u003e \u003cp\u003eMechanisms for Team Coordination 107\u003c\/p\u003e \u003cp\u003eResolve Issues of Overlap 107\u003c\/p\u003e \u003cp\u003eMaintain an Aggressive Posture 107\u003c\/p\u003e \u003cp\u003eCommunicate Logistical Information 108\u003c\/p\u003e \u003cp\u003eCommunicate Responsibility and Timing of Report Submissions 108\u003c\/p\u003e \u003cp\u003eKey Points 108\u003c\/p\u003e \u003cp\u003eAppendix 4A: Due Diligence Checklist 109\u003c\/p\u003e \u003cp\u003eI. Review Company Background and Organization and Proposed Transaction 109\u003c\/p\u003e \u003cp\u003eII. Financial 112\u003c\/p\u003e \u003cp\u003eIII. Technology 114\u003c\/p\u003e \u003cp\u003eIV. Products 115\u003c\/p\u003e \u003cp\u003eV. Marketing and Sales 116\u003c\/p\u003e \u003cp\u003eVI. Legal 116\u003c\/p\u003e \u003cp\u003eVII. Insurance 119\u003c\/p\u003e \u003cp\u003eVIII. Human Resources 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Conducting the Due Diligence Review 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 125\u003c\/p\u003e \u003cp\u003eOverview of Transaction Types 125\u003c\/p\u003e \u003cp\u003eAuctions 126\u003c\/p\u003e \u003cp\u003eAuctions: The Buyer’s Perspective 127\u003c\/p\u003e \u003cp\u003ePreemptive Bids 128\u003c\/p\u003e \u003cp\u003ePurchase Premium Preemption 129\u003c\/p\u003e \u003cp\u003ePrice Preemption: The Buyer’s Perspective 129\u003c\/p\u003e \u003cp\u003eRelationship-Based Preemption 130\u003c\/p\u003e \u003cp\u003eRelationship-Based Preemption: The Buyer’s Perspective 130\u003c\/p\u003e \u003cp\u003eSummary of Transaction Characteristics 131\u003c\/p\u003e \u003cp\u003eComponents of the Due Diligence Review 131\u003c\/p\u003e \u003cp\u003eManagement Presentations 132\u003c\/p\u003e \u003cp\u003eManagement Team Interviews 134\u003c\/p\u003e \u003cp\u003eDocument Review 135\u003c\/p\u003e \u003cp\u003eTour of the Facilities 136\u003c\/p\u003e \u003cp\u003eTechnology Trade-Offs 137\u003c\/p\u003e \u003cp\u003eDue Diligence Reviews: An Objectives-Driven Approach 138\u003c\/p\u003e \u003cp\u003eOverview 138\u003c\/p\u003e \u003cp\u003eDue Diligence Objectives 139\u003c\/p\u003e \u003cp\u003eIntegration 140\u003c\/p\u003e \u003cp\u003eAssessment by Function 141\u003c\/p\u003e \u003cp\u003eFinance and Accounting 142\u003c\/p\u003e \u003cp\u003eHuman Resources 145\u003c\/p\u003e \u003cp\u003eSales and Marketing 148\u003c\/p\u003e \u003cp\u003eResearch and Development 150\u003c\/p\u003e \u003cp\u003eInformation Technology Review 151\u003c\/p\u003e \u003cp\u003eOperations\/Production Review 152\u003c\/p\u003e \u003cp\u003eLegal and Insurance Review 153\u003c\/p\u003e \u003cp\u003eCross-Functional Coordination and Analysis 154\u003c\/p\u003e \u003cp\u003eConclusion 159\u003c\/p\u003e \u003cp\u003eKey Points 159\u003c\/p\u003e \u003cp\u003eAppendix 5A: Illustrative Final Process Letter Outline 160\u003c\/p\u003e \u003cp\u003eInvitation 160\u003c\/p\u003e \u003cp\u003eDescription of Transaction Process 160\u003c\/p\u003e \u003cp\u003eGuidelines for Final Offers 161\u003c\/p\u003e \u003cp\u003eAppendix 5B: Illustrative Data Room Information Listing 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Reporting on Due Diligence: Deliverables and Decisions 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 165\u003c\/p\u003e \u003cp\u003eOutcomes of the Due Diligence Review 165\u003c\/p\u003e \u003cp\u003eThe Importance of Backup Planning 166\u003c\/p\u003e \u003cp\u003eElimination in the Auction Process 167\u003c\/p\u003e \u003cp\u003eOutputs\/Reports 168\u003c\/p\u003e \u003cp\u003eThe No-Go Decision 170\u003c\/p\u003e \u003cp\u003eNo-Go Discoveries 171\u003c\/p\u003e \u003cp\u003eStrategic Issues 171\u003c\/p\u003e \u003cp\u003eValuation Issues 172\u003c\/p\u003e \u003cp\u003eRisk Issues 173\u003c\/p\u003e \u003cp\u003eOutputs\/Reports 175\u003c\/p\u003e \u003cp\u003eRenegotiations of Major Terms 175\u003c\/p\u003e \u003cp\u003eOutputs\/Reports 178\u003c\/p\u003e \u003cp\u003eDecision to Proceed 179\u003c\/p\u003e \u003cp\u003eOutputs\/Reports 179\u003c\/p\u003e \u003cp\u003eComprehensive Due Diligence Report 180\u003c\/p\u003e \u003cp\u003eSummary Due Diligence Report 180\u003c\/p\u003e \u003cp\u003eCorporate Approval Document 182\u003c\/p\u003e \u003cp\u003eIntegration Plan 186\u003c\/p\u003e \u003cp\u003eContingency Plan 188\u003c\/p\u003e \u003cp\u003eKey Points 188\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Execution 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Optimizing Value: Translating Due Diligence Findings into Action 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eActing on Due Diligence Findings 193\u003c\/p\u003e \u003cp\u003ePreacquisition vs. Postacquisition Issues 193\u003c\/p\u003e \u003cp\u003eRevisiting the Valuation and Purchase Price 195\u003c\/p\u003e \u003cp\u003eReviewing the Acquisition Transaction Structure 199\u003c\/p\u003e \u003cp\u003eContingent Purchase Price 199\u003c\/p\u003e \u003cp\u003eAcquiring Assets vs. Stock 200\u003c\/p\u003e \u003cp\u003eSharing Risk: Contractual Terms and Conditions 202\u003c\/p\u003e \u003cp\u003eMarking Up the Draft Purchase Agreement 202\u003c\/p\u003e \u003cp\u003eContract Drafting and Revision 202\u003c\/p\u003e \u003cp\u003eKey Sections of the Purchase Agreement 203\u003c\/p\u003e \u003cp\u003ePurchase and Sale 203\u003c\/p\u003e \u003cp\u003eClosing 205\u003c\/p\u003e \u003cp\u003eRepresentations and Warranties of the Seller 206\u003c\/p\u003e \u003cp\u003eRepresentations and Warranties of the Buyer 208\u003c\/p\u003e \u003cp\u003eCovenants 208\u003c\/p\u003e \u003cp\u003eEmployment Matters 209\u003c\/p\u003e \u003cp\u003eConditions to Close 210\u003c\/p\u003e \u003cp\u003eTermination 211\u003c\/p\u003e \u003cp\u003eIndemnification 211\u003c\/p\u003e \u003cp\u003eTax Matters 212\u003c\/p\u003e \u003cp\u003eGeneral Provisions 212\u003c\/p\u003e \u003cp\u003eDisclosure Schedules 213\u003c\/p\u003e \u003cp\u003eTransition Services Agreement 213\u003c\/p\u003e \u003cp\u003eManaging Contract Negotiations 215\u003c\/p\u003e \u003cp\u003eEffective and Efficient Negotiations 215\u003c\/p\u003e \u003cp\u003eEmpowered Leadership 215\u003c\/p\u003e \u003cp\u003eSupport of Legal Counsel 216\u003c\/p\u003e \u003cp\u003eSupport by Experts 217\u003c\/p\u003e \u003cp\u003eReview and Feedback 218\u003c\/p\u003e \u003cp\u003eCommitment to Getting the Deal Done 220\u003c\/p\u003e \u003cp\u003eClosing 220\u003c\/p\u003e \u003cp\u003eShepherding the Transaction toward Closing 220\u003c\/p\u003e \u003cp\u003eRegulatory Approval 221\u003c\/p\u003e \u003cp\u003eHart-Scott-Rodino (HSR) Act 221\u003c\/p\u003e \u003cp\u003eBuyer Financing 224\u003c\/p\u003e \u003cp\u003eThird-Party Consents 224\u003c\/p\u003e \u003cp\u003eClosing the Transaction 224\u003c\/p\u003e \u003cp\u003eKey Points 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Integration: Extracting Value and Mitigating Risk 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDual Focus of the Integration Effort 227\u003c\/p\u003e \u003cp\u003eExtracting Value 228\u003c\/p\u003e \u003cp\u003eMitigating Risk 229\u003c\/p\u003e \u003cp\u003eIntegration Team 231\u003c\/p\u003e \u003cp\u003eEarly Formation 231\u003c\/p\u003e \u003cp\u003eLeadership 232\u003c\/p\u003e \u003cp\u003eStructure and Composition 233\u003c\/p\u003e \u003cp\u003eIntegration Plan 234\u003c\/p\u003e \u003cp\u003ePlan Components 234\u003c\/p\u003e \u003cp\u003eFirst 90 Days vs. Longer Term 238\u003c\/p\u003e \u003cp\u003eManagement of the Integration Process 239\u003c\/p\u003e \u003cp\u003eCommunication 239\u003c\/p\u003e \u003cp\u003eReporting and Decision Making 242\u003c\/p\u003e \u003cp\u003eContingency Plan 245\u003c\/p\u003e \u003cp\u003eBroader View of Risks 245\u003c\/p\u003e \u003cp\u003ePlan Components 245\u003c\/p\u003e \u003cp\u003eHuman Factors 247\u003c\/p\u003e \u003cp\u003eCulture 247\u003c\/p\u003e \u003cp\u003eKnowledge Transfer 249\u003c\/p\u003e \u003cp\u003eRecommendations for Postacquisition Management 250\u003c\/p\u003e \u003cp\u003eKey Points 251\u003c\/p\u003e \u003cp\u003eAppendix What is the Premerger Notification Program: An Overview 253\u003c\/p\u003e \u003cp\u003eIndex 275\u003c\/p\u003e \"The authors of this book offer what they call a holistic approach to the due diligence aspects of corporate mergers and acquisitions. Although the authors briefly point to legal considerations in the M\u0026amp;A process, this is not a legal title. It was written by CPAs to provide practical guidance to due diligence activities. The authors accomplish this goal therefore the book would be more approporiate for an undergraduate or graduate business library than an academic law library.\" (\u003ci\u003eLegal Information Alert\u003c\/i\u003e, Vol 29, No 3)  \u003cp\u003e\u003cb\u003eWILLIAM J. GOLE, MBA,\u003c\/b\u003e CPA, is the former Senior Vice President, Planning and Business Development, with Thomson Healthcare, a division of Thomson Reuters, where he was responsible for strategic planning and acquisition and divestiture activity. \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePAUL J. HILGER, CPA,\u003c\/b\u003e is the former Executive Vice President and Chief Financial Officer of Thomson Healthcare. He has over twenty-five years of financial leadership experience, and has led numerous acquisitions and divestitures from planning through integration.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eDue Diligence\u003c\/b\u003e \u003cb\u003e\u003ci\u003eAn M\u0026amp;A Value Creation Approach\u003c\/i\u003e\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eIn today's uncertain economic climate, determining the potential for a prospective merger or acquisition to create shareholder value, and then delivering on that promise, is more critical than ever. \u003c\/p\u003e\u003cp\u003eIn one comprehensive volume, \u003ci\u003eDue Diligence\u003c\/i\u003e offers a synthesis of practical guidance that spans the entire acquisition process from strategic planning, candidate pursuit, target evaluation, contract negotiation, through post-acquisition integration. Written by William Gole and Paul Hilger—recognized experts in the field of M\u0026amp;A—this important resource outlines a proven approach to performing due diligence with an eye toward optimizing shareholder value. \u003c\/p\u003e\u003cp\u003eThe authors emphasize a broad approach to merger and acquisition due diligence and focus on points throughout the entire transaction when a deal presents either downside risk or an opportunity to create value. Offering a step-by-step approach to the due diligence process, Gole and Hilger emphasize the following principles: \u003c\/p\u003e\u003cul\u003e \u003cli\u003e\n\u003ci\u003eHolistic Due Diligence:\u003c\/i\u003e A cross-transactional perspective of risks and opportunities that spans the entire process\u003c\/li\u003e \u003cli\u003e\n\u003ci\u003eSound Strategic Framework:\u003c\/i\u003e A disciplined growth strategy that guides the search for suitable acquisition targets\u003c\/li\u003e \u003cli\u003e\n\u003ci\u003ePurposeful Behavior:\u003c\/i\u003e Alignment of the acquirer's actions before, during, and following the close of the transaction with its value creation and risk mitigation objectives\u003c\/li\u003e \u003cli\u003e\n\u003ci\u003eExplicit Planning to Create Value:\u003c\/i\u003e An investor mind-set that focuses on the creation of value for the acquirer\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAny CFO, CEO, controller, director of finance, or business manager involved in a merger or acquisition will find this book to be a timely guide for ensuring productive results.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989090222309,"sku":"NP9780470375907","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470375907.jpg?v=1761782753","url":"https:\/\/k12savings.com\/es\/products\/due-diligence-isbn-9780470375907","provider":"K12savings","version":"1.0","type":"link"}