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How EY can help
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Learn how EY M&A due diligence teams can help your business identify transaction value drivers, improve deal structures and mitigate risks.
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Every acquiror can dive into the critical diligence disciplines below to improve M&A outcomes.
- Commercial diligence: How can the transaction help address changing customer demands, enhance the brand or market position? What incremental markets, customers or sales channels will be created?
- Financial due diligence: What is the right data to support our forecast, and do we have the right key performance indicators (KPIs) to measure risk? How do differences in accounting policy affect the bottom-line profitability? Are there any balance sheet, off-balance-sheet or accounting concerns?
- Human resources diligence: In this turbulent job market, how can roles, responsibilities and communications be structured to maximize retention of key employees? Are there significant costs associated with redundancies? How will we design compensation and benefits programs that align to our vision and culture?
- IT diligence: How can the merger be a catalyst for IT transformation? Is the platform scalable? How can we assess existing IT capabilities for access to new markets and operational improvements?
- Cybersecurity diligence: Have we considered the acquisition’s cybersecurity and data privacy risks in our valuation? How can these risks be mitigated and how can we protect the company financially and operationally while we integrate? When do we spend money to evaluate cyber?
- Operations and synergies diligence: What are the sources and timing of synergies and how are they quantified? How will we integrate operations and how much will it cost? How can we minimize TSA duration to maximize profitability?
- Regulatory diligence: What regulatory issues could threaten compliance, erode transaction value or affect the target’s ability to achieve projected growth?
- Tax diligence: Do we have a tax-efficient structure, and globally coordinated approach, to deliver the commercial objectives and investment rationale?