For those big, powerful and wise enough, the latest trend in due diligence strategy is... don't bother.
Warren Buffett recently addressed MBA students at IMD, the Swiss business school. He was there to talk about a deal he struck a few years ago where Berkshire Hathaway paid $4bn for 80% of Iscar, a metal tools manufacturer.
Mr Buffett admitted that he never bothered with due diligence except where there were environmental concerns.
He said that he could tell within minutes of talks commencing if a deal was going to occur. The deal should be so obvious to you. If you have to carry the calculation out to five decimal places, like pi, it can't be a good deal.
Unless you have as much investing experience as Mr Buffet, or indeed as deep pockets, we strongly recommend completing thorough due diligence before every deal!
More on operational, taxation and financial due diligence here.
This well-established scrap vehicle yard in Essex offers a unique opportunity to acquire a business with a significant stock of decommissioned parts and panels, alongside essential equipment such as forklifts and heavy demolition plant.
Opportunity to acquire a well-established engineering product and equipment distributor located in the heart of the West Midlands.
Presenting an exceptional opportunity to acquire a well-established specialist joinery business located in Southport, Merseyside.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.