By Tom Schramski, PhD
Volume 1 Issue 12, July 8, 2014
Having facilitated many transactions over the past thirty years, there is clearly one aspect that is intimidating to most business principals – due diligence. There seem to be endless requests for information, questions about the nature of the data, and sometimes, vigorous attempts to re-negotiate the terms based on the discovery of “new information.” Of course, there is some element of due diligence in all areas of professional and personal life, and it’s always a question of what we do with the “discovery” once it is known. You may have great data but what is the outcome in practical terms?
However, there is a different way to look at due diligence – if you prepare for it, you can improve performance immediately and reduce the pain down the road, even if you are a nonprofit organization. Here are eight basic due diligence practices you can undertake to make a difference now:
As the title of this e-newsletter implies, preparation is worth the careful expense of your time. If you plan to make a transition, it will help to maximize your value at the point of transaction. If not, it will at least improve your performance and benefit everyone connected to your organization.
Tom was the Founder and Managing Partner of VERTESS. He was a Certified Merger & Acquisition Advisor (CM&AA), consultant, and Licensed Psychologist with over 35 years of very successful national experience in the healthcare marketplace, including co-founding and building a $25 million behavioral health/disabilities services company. Tom represented sellers and investors across the healthcare spectrum and was recognized for his executive leadership in the 2005 Entrepreneur of the Year issue of Inc. Tom passed away in December 2018.