“The art of doing due diligence is being lost. Buyers aren’t analyzing the operations and books of prospective acquisitions with nearly enough vigor” Fortune, 9/3/2001
Alton Worldwide stresses the importance of doing Due Diligence. The group believes there is a need to conduct it, once initial rounds of questioning have been answered. The transaction should be examined from four different perspectives:
The goal of technical due diligence is to determine the effective use and deployment of the new technology. The group will examine the usability of the technology, as well as determining any maintenance problems.
The market due diligence will determine whether the company can be a successful entity, without regard to its technological capabilities. We will examine the market context in which the company plans to operate, define the market divers, identify and analyze the competitors, explore the company positioning options, and develop or refine the company’s product offerings.
The objective of the financial due diligence will be to identify the key value drivers for the company. The group will develop business cases with supporting financial and business models, as well as examine and validate existing plans. The group will determine investment options.
The group will focus on reviewing industry laws and regulatory decrees and determine the appropriate application of the law and regulations in order to ensure the safety of the investment. The group will also identify risks and potential liabilities as they review prospective strategies for their clients.
Due Diligence should be done in order to reduce the business case and transaction risks. We focus on bringing together an understanding of technologies, analysis of the market, financials and an overview of the overall economic climate.