Due diligence for assets that are changing underneath the deal
Why commercial, operational and technology diligence must increasingly test future scenarios rather than validate historical performance.
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M&A strategy
Shape M&A strategy from portfolio rationale and target priorities through diligence, value creation and integration.
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Articles
M&A strategy when the obvious targets are gone
How companies can build a stronger acquisition radar by connecting portfolio logic, target intelligence and strategic fit before competition intensifies.
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Acquisition readiness tests whether the buyer can absorb what it wants to acquire
Strategic fit matters only if capital, leadership capacity, operating model and integration capability can support the transaction.
A deal thesis should explain why ownership creates more value than any alternative
The logic must connect strategic need, target characteristics, economics and the specific advantage of acquiring rather than building or partnering.
Strategic challenges
Which assumptions could cause the deal thesis to fail?
The challenge is identifying where downside comes from before valuation, momentum and confirmation bias narrow the decision.
Can the target's operations support the performance assumed in the deal?
The challenge is identifying hidden constraints that may limit growth, margins, service or integration after ownership changes.
POV
A forecast is not commercially credible because the spreadsheet balances
The revenue case should be supported by observable customer and market behavior, not by internal consistency alone.
The most important diligence question is still whether the deal should exist
No amount of financial or operational analysis can rescue a transaction whose strategic logic was weak from the beginning.
Strategic impact
Portfolio-led M&A makes acquisition priorities more selective and coherent
Clear strategic gaps and timing criteria help leadership pursue transactions that reinforce portfolio direction rather than distract from it.
A clear deal thesis defines the economic and strategic logic before valuation dominates
Explicit assumptions make it easier to test fit, alternatives and the conditions required for the acquisition to create value.
What we observe
Strategic diligence often starts too late, after the organization is already committed
Once deal momentum builds, teams can become better at defending the thesis than questioning whether the transaction should happen.
Integrations often prioritize visible organizational changes over value-critical dependencies
Reporting lines can change quickly while customer, technology and operating issues that determine deal economics remain unresolved.