Due diligence refers to an ensemble of investigative techniques used to define a given organization’s performance. It is often used in situations of M&A where the consultant seek to recommend one or just a few interesting targets for the M&A to its client, based on the client’s objectives. One essential contribution from the consultant is often in developing a comprehensive set of performance measures that can be quantified and appraised.
- Articulate a clear vision and strategy for the client and targets’ businesses.
- Identify performance categories (financial, operations, innovation, etc) and objectives
- Develop effective measures of performance, with consideration for short-term and long-term results
- Ensure client’s acceptance of the measures
- Create sound tracking and communication systems
- Collect and analyze performance data