Pre-acquisition Due Diligence

Hardesty Hackett has significant experience in working with Private Equity companies as well as clients interested in expanding their business. While many PE companies look at a possible acquisition purely from a financial point of view, Hardesty Hackett helps its clients look at an acquisition from a much wider perspective. We give you the ability to examine the potential of the company, not just its past and current financial situation.

Through a better understanding of your target’s market, the distribution channels, the operations and the managerial dimensions, you will gain knowledge that will support your acquisition decision or your investment strategy.

Additionally, through our investigation, we will also determine the improvement areas, quantify the improvement potential, and propose an implementation plan to realize the changes after acquisition, along with our unique commitment to deliver the agreed goals.
This detailed knowledge when coupled with the support of Hardesty Hackett’s effective operational change management programs, will enable you to realize rapid and significant improvements in shareholder value within months, rather than years.

Post-Acquisition Integrations hold great potential, yet often fail, with only 50% actually achieving their objectives. Failure to successfully Integrate contains risks even greater than the cost of the acquisition, such as loss of customers, loss of key people and in some industries, safety. Avoiding the risks of a merger or acquisition and realizing its potential value is certainly a challenge and not a time for “business as usual’. Just as it’s essential that every acquisition or merger have a clear strategy to add value to the organization, it’s equally important to have a thorough and well thought out integration plan with specific objectives and milestones.

Integration plans should begin as early as possible following a deal, even “before the ink has dried” if possible, to avoid any loss of talent. This is also the time for very effective communication so that the acquisition or merger can be ‘sold’ to employees as a benefit to them, as well as the organization. Remember, acquisitions and mergers are exciting for those in the loop, but frightening for everyone else, so don’t expect enthusiastic cheers from everyone.

Hardesty Hackett’s Integration approach aims to help clients from a tactical perspective, by insuring a structured critical path through both the planning and execution stages of an Integration program, to achieve the expected financial and non-financial benefits. This approach allows for the early identification of problems and risks to the Integration process and an effective risk minimization and problem resolution process. Having a third party involved also provides additional experienced and objective support during the very difficult transition period, avoiding the pitfalls of “them versus us” (acquirers versus acquired) thinking.

Hardesty Hackett facilitates the integration of business activities and company culture, insuring minimal disruption on production and customer satisfaction, while keeping our objective eyes and ears wide open to detect potential issues. This is done while supporting our client’s people – existing and new – in making any changes to systems and processes to insure that the expected synergy and benefits are realized.