Too often, technology companies seeking a profitable exit make the flawed assumption that the due diligence process resides solely in the hands of the buyer.This assumption can lead to fatal mistakes that can undermine value, slow the process, or even kill the deal.
The truth is, as a selling company, you have an enormous opportunity to shorten due diligence timelines and maximize the value that the buyer assigns to your company. The trick is to avoid the Seven Deadly Sins of M&A:
1. Failure to Validate the Buyer
2. Failure to Prove Ownership of Intellectual Property
3. Ignoring Unresolved Litigation
4. Discrepancies in Financial, Accounting or Operational Planning
5. Failure to Validate Company Agreements
6. Unresolved HR and Employee Liabilities
7. Sloppy Corporate Governance
Addressing these common pitfalls well in advance of a buyer knocking at your door will ensure that your company is perceived as healthy, attractive and as riskfree as possible.