RT Journal Article
SR Electronic
T1 Beyond the Number Crunching
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 80
OP 82
DO 10.3905/jpe.2007.682346
VO 10
IS 2
A1 William A. Wexler
A1 James Connor
YR 2007
UL https://pm-research.com/content/10/2/80.abstract
AB Thanks to an oversupply of capital, and to the increasing presence of both traditional and non-traditional M&A players, we are in the midst of a hyperactive deal environment, in which the supply of qualified deals can't meet the demand. Companies, private equity firms and even hedge funds intuitively know that some transactions don't make good business sense. But in their rush to move forward, they often forget about due diligence. That oversight can lead to financial disaster. Due diligence, when done right, can differentiate those companies for which an infusion of capital makes sense, from companies where more capital will simply paper over fundamental deficiencies. Though financial due diligence is critical, the process is still incomplete if one also doesn't perform operational and strategic due diligence.TOPICS: Private equity, performance measurement, legal/regulatory/public policy, portfolio construction