Mergers and acquisitions cause hundreds of thousands of dollars in licensing and contract issues for many organizations. Furthermore, expertise may be limited as M&A activity is infrequent but requires experience. Avoid a painful process with a structured approach to due diligence, pre-integration planning, and integration execution. A failed due diligence process can result in a software licensing audit and loss of forecasted synergies. Effective asset management practices can help reduce the risk of adverse findings.
Use this blueprint to help you:
- Understand the due diligence process and what information to gather.
- Be aware of common red flags during due diligence.
- Create accurate cost estimates and a contingency fund to compensate for unavailability of information.
- Document assumptions, risks, and budget as new information is obtained.
- Communicate with the M&A team and business process owners to create a smooth transition plan.