• M&A Due Diligence: Little Things Mean a Lot
  • April 5, 2007 | Author: Anthony Milazzo
  • Law Firm: Ogilvy Renault LLP - Toronto Office
  • Martindale-Hubbell posed the following question to provide a variety of views on this important topic:

     

    When contemplating a major merger or acquisition, what are the key aspects of due diligence that companies should consider but often overlook?

     

    Consider these strategies for an effective due-diligence review:

     

    • Divide and conquer. Define the scope of investigation up front with all relevant constituents; ascertain critical aspects for review, especially when faced with too short a time line; and complete essential due diligence before it’s too late (i.e., before management buy-in and decision to proceed).

     

    • Coordinate integration of legal, business, operational, financial and tax investigation.

     

    • Ensure review includes a proper emphasis on any potential pension liabilities and IP exposure.

     

    • Cross-border investigation: Don’t overlook the risk of potentially costly liabilities when limiting review of a target’s less material foreign affiliates.