The Importance of Strategic Planning and Due Diligence in Mergers and Acquisitions: an Australian Perspective
Jarrod McDonald, Max Coulthard & Paul de Lange
Abstract
This study explored three key areas of merger and acquisition (M&A) strategy. These were: the link between corporate vision and M&A strategy; the importance of the due diligence process; and the impact of experience in completing successful M&As. The study found that there was a clear alignment between corporate and M&A strategic objectives but that each organization had a different emphasis on individual criterion. Due diligence was critical to success; its particular value was removing managerial ego and justifying the business case. There was mixed evidence on the value of experience, with improved results from using a flexible framework of assessment.
