31 Oct 10 Common M&A Mistakes to Avoid (#10 of 10)
10. Economizing on due diligence
Many buyers fail to dig into due diligence, which is the time to really learn about what you are about to acquire and whether or not it fits your company and your strategy. It’s time consuming and can be expensive, but it’s important for the buyer to prevent a bad deal or a future failure. Buyers should pay attention to financial issues, of course, but also corporate culture, people, systems, processes, and the other factors that can determine the success of a deal. You need to understand the financial information, what is going on behind the numbers, and how you can make improvements.
Take home message: Invest in a thorough due diligence.