Due Diligence for M&A and Competitive Analysis

The current financial climate has brought with it a healthy skepticism and a renewed respect for the basics of financial due diligence. According to a recent PWC survey, here are the areas where executives plan to increase their scrutiny of potential deals:

-Projected Financials
-Non-Financial Performance Measures
-Current Financials
-Technology Leadership
-IT Systems
-Market Position
-Customer Service Operations
-Disaster Recovery and Security
-Productivity

In addition, the survey found that fast-track companies, who were outperforming their peers on sustained revenue growth and gross margins, are placing a higher premium on competitor information than ever before. Here's what they wanted to know when benchmarking themselves against their competitors:

-Changes in pricing
-Operating performance
-New product initiatives
-Changes in corporate strategy

The business intelligence units at these fast-growth companies almost always use financial models in investigating target companies or competitors. With a direct interface to AM Best's Statement data, SS&C's financial modeling software, Finesse, can project your company's financial performance side-by-side with targets or competitors and even combine company financials to view the projected results of a merged company.

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