The link between Good Governance and a Successful M&A скачать в хорошем качестве

The link between Good Governance and a Successful M&A

Think about the aspects that you would be concerned with when considering buying a business. Valuation would probably be first on the list followed closely by the financial outlook or well being of the business. Reducing the risk in any investment also relies on the golden rule of knowing your investment by understanding the business itself, its model of value generation, and the competitive environment it operates in. Gaining clarity about the broader context – the economic, industry and sector trends influencing the future of the business – is also an essential part of investing. Much is involved when financiers are looking to invest. Verifying the accuracy of the information presented can also be challenging without involving a knowledgeable third party. Well-designed governance takes all of the above into account, enhances value and reduces risk. Due Diligence Investors want to make sure that the picture presented is accurate and even if your business is not doing as well as it could be, that there is a plan in place to get it to that point. They also want to be sure that you practice good governance so that they do not face obstacles further down the road – a situation which could turn a purchase on its head. Due diligence forms part of this process and should be the foundation of any successful merger or acquisition. Watch Sirdar Partner and Head of Guide, Beverley Hancock as she discusses what due diligence is, the importance of it, the steps involved in the process, governance fundamentals to bear in mind and the benefits of undertaking a robust board performance diagnostic when considering whether to put up a “for sale” sign.