A Better Due Diligence Process, Part 4

[Charles Bacon]

Objectives of the Due Diligence System

The due diligence department must coordinate with all other key operations of the organization to establish overall objectives of the due diligence system. Specific objectives are important to the success of the system, because they provide the focal points for tracking progress. Both qualitative and quantitative metrics can be used for this tracking activity. Some of the many metrics that can be used include:

• Improvement of Profitability
• Risk Reduction
• Disposal of Negative Assets
• Improvements in Communications, both Internal & External
• Reduction of Costs
• Elimination of Ineffective Systems
• Bolster Stakeholder & Employee Satisfaction
• Elimination of Inaccurate Data
• Improvements in Change Processes
• Improvements in Documentation
• Improvements in Reporting to Outside Agencies.

This kind of highly-efficient due diligence system can and more importantly should support all major and minor corporate events and processes, including:

• Financings, both Debt & Equity
• Expansions
• Mergers & Acquisitions
• Technology Acquisitions & Licensings
• Product Development
• Supply Chain Monitoring
• Strategic & Tactical Planning
• Operations
• Marketing & Sales

Next: A Better Due Diligence Process, Part 5: Communications and Education