Due diligence

Within the current global entertainment industry one acquisition follows the other. For some players, the urgency is high as for them it is: eat or be eaten! Well known motives for acquiring a company are: removing a competitor from the market, getting access to a new client network, adding new expertise to your own, reaching economies of scale and so on. Whatever the motive, there is always this promise lurking that it will turn out into something positive. Of course the target company will be vetted before a bid will be released and the target will at some point be undergo financial and legal due diligence. However it is just as important to closely look at the operational set-up of the target company. How does this compare with your own organization. What is the DNA of the target company, how does it do business, how does it organize its activities, who are the key people, how strong is their commitment to make the transition work. And there are many, many more questions to be answered.