The success or failure of a merger or acquisition often depends on much more than the financial strength of the target company. Current management’s leadership abilities, operating abilities and personal motivations can profoundly influence what happens after a change in ownership. On other hand to the financials, the real assets of a company’s management may not be exposed easily to come up later with catastrophic results.
To minimize risks, buyers need to take care of screening and due diligence on company management. This assessment of human capital is a specialty of LM Legal. Our Screening & Due Diligence service quantifies real growth potential on a top-line level as part of a due diligence process. Investment decisions made by private equity companies are reliant upon detailed market knowledge and industry benchmarks. We provide private equity companies with the necessary market information and industry key figures using our well-established operational industry competence.
The opportunities to gain information in the screening & due diligence process are usually limited. Relevant sales elements are generally only considered on a superficial level, even though they form the starting point for future growth. We have identified all relevant questions on the subject of ‘sales’ and ‘top-line growth’ within the framework of a professional testing methodology. We decided to select the critical questions for validating realistic growth parameters as part of a LM Legal.
We provide the expertise on human capital that makes business acquisitions and investments successful. By determining the human and leadership strengths and weaknesses of the target company’s management team, we point the way toward acquisitions and investments that pay off in the shortest period of time. We can identify important areas of concern that would not normally turn up in rounds of interviewing but that might sabotage future productivity. Our assessments and probing also provide crucial intelligence on which individuals to place in which positions after the merger or acquisition.
With extensive experience in the related field, we evaluate personal and leadership competencies, we save you time, reduce risks and show you how to mobilize those who can contribute to a successful changeover.
Naturally, you’d prefer to know about such booby traps and landmines before you commit yourself to a doomed course of action. Given the stakes of a botched merger or acquisition, or a changeover brimming with battles, can you really afford not to perform management due diligence?