Our Spotify podcast explores why most mergers and acquisitions fail to create value and provides a practical guide to performing a strategic due diligence process.
The hosts The hosts highlight common pitfalls like overpaying for acquisitions, failing to understand the true value of a deal, and neglecting to account for future uncertainties. They emphasize that a successful deal depends on a clear strategic rationale, a thorough understanding of the target’s competitive position, and a comprehensive assessment of potential risks. They then present a four-stage approach to strategic due diligence that incorporates scenario planning and probabilistic simulations to quantify uncertainty and guide decision-making. Finally, they discuss how to navigate deal-making during economic downturns and stress the importance of securing existing businesses, revisiting return measures, prioritizing potential targets, and factoring in potential delays.
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