A Formal and Systematic Due Diligence is your best Defence against Acquisition Failure

It is widely acknowledged that the majority of acquisitions fail to deliver positive shareholder returns. This series of articles identifies the most common reasons for failure and identifies how some of major issues which need to be addressed in achieving acquisition success.

Failure rates are high

Poor evaluation of benefits

Overestimating benefits

Allowing emotion to dictate evaluation

Develop worst cast scenarios

Talk to the customers

Review your acquisition knowledge

Take account of your capacity to undertake acquisitions

Cultural fit is critical to success

Ethical values need to be reviewed