Executive Summary
M&A can unlock growth, but poor diligence readiness kills value. This piece outlines five avoidable mistakes and how to fix them.
1. Financial Hygiene
Monthly closes, bank reconciliation, audit-ready records.
2. Data-Backed Valuation
Anchor price to KPIs—retention, LTV:CAC, contribution margins.
3. Cohort Visibility
Segment/channel breakdowns; build a cohort databook.
4. Compliance & Governance
Register IP; formalize HR; run pre-diligence legal audit.
5. Cash & Working Capital
Forecast burn; show AR/AP cycles and runway.
Consulting Takeaways
- Start readiness 6–12 months before outreach.
- Integrate financial + operating KPIs.
- Use external advisors to de-risk execution.