Proceedings of the 3rd European Conference on Intellectual Capital

Sorin Anagnoste and Gabriela Dumitru
both sides <strong>of</strong> <strong>the</strong> risks involved, potential attractiveness. This is normally done via due diligence
reports and management presentations. In <strong>the</strong> end <strong>the</strong> process as such is managed through <strong>of</strong>fer
evaluation, structuring <strong>the</strong> deal, negotiating <strong>the</strong> agreement and in <strong>the</strong> end signing and closing <strong>the</strong>
process.
Figure 1: Main drivers <strong>of</strong> mergers and acquisition
Source: Ro<strong>the</strong>nbuecher, J. and von Hoyningen-Huene, J. (2008) The rise <strong>of</strong> Emerging Markets in
Mergers and Acquisitions, A.T. Kearney
There are different parts involved in an M&A process like auditors, banks, legal advisors,
management <strong>of</strong> <strong>the</strong> two parties involved and consultants whose role is mainly in developing <strong>the</strong>
commercial due diligence process that results in a due diligence report based on an in-depth analysis
<strong>of</strong> <strong>the</strong> market and competition, strategy and business plan.
Due diligence is a key activity in mergers and acquisitions because it is <strong>the</strong> point at which both <strong>the</strong>
potential for value creation and <strong>the</strong> purchase price are determined. To fully assess <strong>the</strong> value creation
potential acquires perform different types <strong>of</strong> due diligence reports (Niewiem and Ro<strong>the</strong>nbucher,
2008):
Figure 2: Types <strong>of</strong> due diligence reports
Source: Perry, S.J. and Herd, J.T. (2004) Mergers and acquisitions: Reducing M&A risk through
improved due diligence, A.T. Kearney, Vol. 32 No.2
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