Challenges and Risks in the Due Diligence Process Answered with an Innovative Approach
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In existing academic studies on the Due Diligence process, the different areas have been considered separately. This is time-consuming and causes inefficiencies. The proposed approach to Due Diligence integrates these separate areas into one process. While every company's success can be defined by a few key factors, these differ by industry. The goal of this analysis is to develop a basis for decision-making regarding Mergers and Acquisitions for small- and medium-sized manufacturing companies. It also has a positive impact on the success rate of mergers and acquisition transactions by generating a scorecard model that enables the potential acquirer to perform an overall analysis of the existing data as well as to generate an informed outlook for the future using a standardized and efficient approach. The model is based on different research methods. First of all, a literature research was conducted to define the theoretical framework. There are two main areas, the Strategic Controlling on the one hand, and M&A, on the other hand. The theoretical findings are specified through expert interviews. The expert interviews are semi-standardized. There is a quantitative and a qualitative part. Based on the analysis, a concept for a leaner DD approach has been developed. The article presents a summary of the research.
Doi: 10.28991/HIJ-2021-02-01-06
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