Farrelly and Mitchell

Insight

Soft Due Diligence Should Deliver Hard Results for Food & Agribusiness Deals

Due Diligence (DD) put simply, is an investigation or audit of a target by a buyer, to evaluate historic performance and future potential. However, more conventional approaches relying solely on past documented performance of the assets being acquired, can sell buyers short. It is critical to evaluate the whole supply chain in which the target is merely a single entity.

Hard DD follows a pro-forma, lookback approach, usually involving legal and financial information on a target. While this formal approach is important, it usually provides very little insight into the future operational or commercial capacity and value generation potential of the target. The addition of Technical Due Diligence (TDD) and Commercial Due Diligence (CDD), which include the focus on soft areas of the target, should provide much deeper operational and strategic insights. This is particularly critical in the domain of private firms, which are off-limits from the scrutiny of publicly quoted exchanges or stock markets.

The primary objectives of DD include:

To identify key internal & external risks
To validate & support valuation process
To identify integration issues & requirements

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Author

Malachy Mitchell

Managing Director

Malachy Mitchell is co-founder and Managing Director of Farrelly & Mitchell. He works with CEOs, executives and leaders from private enterprises and public sector institutions.

Malachy Mitchell

Managing Director

Soft Due Diligence Should Deliver Hard Results for Food & Agribusiness Deals

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Soft Due Diligence Should Deliver Hard Results for Food & Agribusiness Deals

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The primary objectives of DD include:

To identify key internal & external risks
To validate & support valuation process
To identify integration issues & requirements

To read the full insight, click here.

Download Full Insight

Author

Malachy Mitchell

Managing Director

Malachy Mitchell is co-founder and Managing Director of Farrelly & Mitchell. He works with CEOs, executives and leaders from private enterprises and public sector institutions.