- Prime Student members get £10 off with a spend of £40 or more on Books. Enter code SAVE10 at checkout. Enter code SAVE10 at checkout. Here's how (terms and conditions apply)
Due Diligence: An M&A Value Creation Approach (Wiley Finance) Hardcover – 30 Jul 2009
|New from||Used from|
- Choose from over 13,000 locations across the UK
- Prime members get unlimited deliveries at no additional cost
- Find your preferred location and add it to your address book
- Dispatch to this address when you check out
Special offers and product promotions
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Would you like to tell us about a lower price?
If you are a seller for this product, would you like to suggest updates through seller support?
"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&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." ( Legal Information Alert, Vol 29, No 3)
From the Inside Flap
In 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.
In one comprehensive volume, Due Diligence 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&A this important resource outlines a proven approach to performing due diligence with an eye toward optimizing shareholder value.
The 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:
- Holistic Due Diligence: A cross–transactional perspective of risks and opportunities that spans the entire process
- Sound Strategic Framework: A disciplined growth strategy that guides the search for suitable acquisition targets
- Purposeful Behavior: Alignment of the acquirer¿s actions before, during, and following the close of the transaction with its value creation and risk mitigation objectives
- Explicit Planning to Create Value: An investor mind–set that focuses on the creation of value for the acquirer
Any 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.See all Product description
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
Most helpful customer reviews on Amazon.com
To increase the probability of making a successful acquisition, the prospective acquirer has to clearly articulate why it intends to make an acquisition and how it proposes to generate a return.
This plan to create value has three sections:
1. Strategic purpose: A compelling reason to opt for an acquisition.
2. Value drivers: An examination of the magnitude and variability of the sources of value created by the acquisition, i.e., stand-alone value, acquisition premium, purchase price, synergy value, and combined value.
3. Key risks: Preliminary risk assessment and key issues of focus for the transaction considered.
Messrs. Gole and Hilger stress that the plan for creating value has to serve as the framework for purposeful behavior leading up, during, and following the close of the acquisition.
The due diligence team members of the prospective acquirer can make the best use of their finite resources if they conduct their work in a top-down, objectives-driven manner, where the objectives are informed by the plan mentioned above and their findings guide the prospective acquirer's negotiating posture and post-acquisition action plans. A fundamental purpose of the due diligence review is to validate or alter the key assumptions of this plan. This top-down, objectives-driven approach also encourages the members of the due diligence team to combine the risk-assessment mentality of an auditor with the value-creation mentality of an investor.
The authors note that the alternative compliance approach based on a checklist gives equal value to all aspects of discovery. The optimal result from this approach is to indicate that nothing emerged that would cause the due diligence team to recommend that the transaction not be pursued. However, a solid business is not necessarily a good investment.
Furthermore, this evaluative process gives the prospective acquirer not only a negotiating benchmark if it decides to proceed with an acquisition, but also a back-up plan with its next-best option if the transaction being pursued fails to materialize. This process remains useful, even in the presence of a prospective deal that comes to the potential acquirer at a time and in the form of the seller's choosing.
In the absence of this strategic assessment process, the acquiring company has only two options: Buy it or not. The absence of strategic grounding increases the probability of a decision-making process that is opportunistic in nature, undisciplined in its execution, and inconsistent with the company's strategic goals.
Messrs. Gole and Hilger remind their readers that a decision to continue discussions and proceed with the acquisition does not mean a clear path to closing. The nature of each due diligence finding dictates whether it is best addressed before or after the closing.
In addition, the authors emphasize that once the deal is close, the timely execution of the integration plan is key to creating shareholder value. This timely execution is only possible if the integration plan is complete and ready for implementation before the closing of the deal. Integration covers operations, synergies, and culture. The cross-functional integration team should be assembled as early as possible in the acquisition process to facilitate the rapid implementation of the integration plan.
Finally, Messrs. Gole and Hilger recommend that a contingency plan supplement the integration plan. This contingency plan contains strategies to mitigate, remediate, or monitor lower-probability, but higher-impact events.
In summary, the authors advocate an acquisition approach that is guided by a dual focus on the creation of value for the acquirer's shareholders and the mitigation of the transaction's various risks.