Due Diligence: Planning, Questions, Issues

Due Diligence: Planning, Questions, Issues

by Gordon Bing


View All Available Formats & Editions
Choose Expedited Shipping at checkout for guaranteed delivery by Thursday, August 22


People often fall in love with a business—just as they fall in love with a house—and forget to use their heads as well as their hearts to assess the property. Asking the right question at the right time can save potential buyers a bundle of money or help them avoid making a major mistake. In this completely revised edition of Due Diligence Techniques and Analysis, published in 1996, Bing breaks down the due-diligence process in detail and shows readers how to investigate, step-by-step, a business with an eye to buying or investing in it. In addition, the author identifies the techniques to employ, the questions to ask, the documents to review, and the issues to explore to reach intelligent conclusions about an acquisition. In a 30-year practice as a deal maker representing buyers and sellers, Bing knows where the bones are buried in many deals, providing invaluable insights and expert opinion readers can use to arm themselves when faced with a tough buying decision.

Fifty chapters cover the different aspects of a typical business up for sale, such as ownership, management, marketing, accounting, environmental issues, and culture. The questions and topics discussed in each are preceded by commentary that highlights major areas for study, objectives, and common problems. In this book, you will find: —The most comprehensive, powerful, up-to-date set of due-diligence questions ever assembled. —Invaluable insights for those contemplating buying or investing in a business, new executives who need to get up to speed on a company or division, anyone conducting forensic investigations, and financiers wondering whether it's time to lend more or pull the plug. Most acquisitions that fail can be traced to failures of due diligence. This book will enable buyers to avoid problems and spot opportunities quickly, making business success much more likely.

Product Details

ISBN-13: 9780313345401
Publisher: ABC-CLIO, Incorporated
Publication date: 12/30/2007
Edition description: Revised
Pages: 224
Product dimensions: 6.14(w) x 9.21(h) x 0.56(d)

About the Author

Gordon Bing is a Houston-based independent consultant specializing in multimillion dollar acquisitions and mergers in a wide variety of industries. He is the author of numerous books, including Corporate Divestment, Corporate Acquisitions, Due Diligence Techniques and Analysis (Quorum, 1996), and Selecting Your Employer (Butterworth-Heinemann, 2006).

Table of Contents

Preface     xiii
Getting Started: Basic Information     1
Preliminary Critical Information     7
Key Early Issues and Alarms     11
Ownership and Capital Structure     17
Directors and Governance     21
Management     25
Products and Services     31
R&D and Technology     35
Markets and Customers     39
Competition     43
Marketing, Selling, and Distribution     47
Pricing     51
Advertising     55
Public and Investor Relations     57
Manufacturing     61
Purchasing and Outsourcing     67
Human Resources and Employees     71
Union Issues     77
Employee Compensation and Benefits     81
Retirement Plans, 401(k)s, and ESOPs     85
Culture of the Business     89
Legal and Regulatory Issues     93
Government Business, Lobbying, and Politics     99
Information Systems     105
Internet     109
Budgets     111
Planning     113
Insurance and Bonding     115
Environment and Safety Issues     119
Debt, Banks, and Financial Institutions     123
Investments, Hedging, and Derivatives     127
Cash and Cash Management     131
Accounting: General Questions     135
Accounting Policies     139
Accounts and Notes Receivable     143
Taxes     147
Inventory     151
Fixed and Other Assets     155
Liabilities     159
Cost of Sales and Gross Profit     163
Selling and General and Administrative Expenses (SG&A)     165
Income Recognition and Backlog     167
Intracompany Transactions     171
Real Estate     175
Investment Questions and Issues     179
Off-Balance Sheet Items     183
Assets and Liabilities Excluded     187
Financial Ratios and Trends     191
Warning Signs     195
Outrageous Improprieties     197
Index     199

What People are Saying About This

The Earl of Bessborough

"I have read your new book with admiration. The scope is encyclopaedic and it is a must for anyone involved in analysing any business for any purpose, nationally or internationally. Truly a masterclass in due diligence."

Bruce Wilkinson

"This book will prove to be the definitive work on the subject of due diligence. It is thorough, readable, and organized in such a way as to be a useful how to for those of us engaged in corporate M&A activity. We all know it is easier to simply buy a business than to buy it for the right price and the right terms. This book will certainly help the reader obtain the right terms."

Mitch Rosenbleeth

"Due Diligence should be in the toolkit of any serious executive or consultant needing to know the facts about what's going on in a business. Whether considering an acquisition or improving the controls and performance of an existing company, this book provides the roadmap for assessing everything you need to know."

Customer Reviews

Most Helpful Customer Reviews

See All Customer Reviews