Resources

"Getting it Right: Conducting the Proper Due Diligence to Ensure a Successful Acquisition"

April 2012
Smart Business Detroit

Thomas Vaughn was interviewed for Smart Business Detroit's April 2012 article, "Getting it Right: Conducting the Proper Due Diligence to Ensure a Successful Acquisition." The article addresses both preliminary and detailed due diligence activities, and their importance in maximizing value—particularly since the process itself can be expensive and time consuming for both the buyer and the seller. As an important part of every acquisition, Vaughn said, "[t]here's a lot that goes into doing proper due diligence, and if you fail to do it right, the transaction could be disastrous."

Vaughn states that assembling the correct team is the first step to crafting a successful due diligence strategy. During preliminary due diligence, buyers need to look for "'go, no go factors,'" such as accurate (or inaccurate) financial projections, major customer problems and high-dollar legal issues. In the detailed due diligence phase, Vaughn believes efficiency should be a priority. "Have your team divide up responsibilities so that you're not duplicating efforts and you are conducting the process as efficiently as possible" said Vaughn. The article goes on to address red flags in the due diligence process, as well as a few surprises that can show up at the last minute. 

Click here to read the complete text of "Getting it Right: Conducting the Proper Due Diligence to Ensure a Successful Acquisition."

Reprinted with permission. ©2012 Smart Business Network Inc. Reprinted from the April 2012 issue of Smart Business Detroit.