Due Diligence Techniques and Analysis: Critical Questions for Business Decisions

For buyers of a business or anyone involved in any phase of the due diligence process, Gordon Bing provides a unique, comprehensive, one-volume source of information and guidance. His book will help investors research, evaluate, and understand an existing or proposed business not only from a financial standpoint, but also from equally important nonfinancial standpoints. It provides a full explanation of the due diligence process, including systematic methods to determine the information you need, why you need it, and how to get it. Keyed to each topic, chapter by chapter, is a full list of specific questions that should be asked during due diligence proceedings to be studied beforehand and carried with you as a valuable on-the-spot reference. A unique, practical resource for professionals and a hands-on text for students in business schools and upper division undergraduate courses in mergers and acquisitions. Chapters 1 and 2 discuss how to plan, organize, and conduct due diligence. In Chapter 3, Bing shows how to construct a list of the information and documents you will need. Chapter 4, by M&A attorneys James W. Ryan and Robert C. Beasley, deals with the legal aspects, responsibilities, and perils of performing or failing to perform due diligence. From there the book focuses on specific areas of due diligence inquiry—including management, marketing, human resource and other important functions—and helps you develop your own tailor-made investigation best suited to the company you are studying. The book concludes with a unique checklist of all the questions explained earlier—a manual you can study beforehand and then carry with you into meetings on site.

Table of Contents:
Preface Acknowledgments Introduction Planning Due Diligence Conducting Due Diligence Constructing the Checklist Due Diligence from a Legal Perspective (by James W. Ryan and Robert C. Beasley) Business Description and Basic Information Critical Early Questions Capital Structure and Ownership Management Products and Services R & D and Technology Real Estate and Facilities Markets, Competition and Customers Marketing Pricing Advertising and Public Relations Manufacturing Purchasing Human Resources Employee Compensation and Benefits Corporate Culture Legal Information Systems Budgeting and Planning Insurance and Bonding Environmental Issues Debt and Banking Investments and Cash Management Taxes Accounting General Questions Accounting Policies Cash Accounts and Notes Receivable Inventory Fixed and Other Assets Liabilities Backlog and Income Recognition Cost of Sales, Selling and Administrative Expenses Intercompany Transactions Investment Questions and Issues Appendix: Checklist Selected Bibliography Index