Successfully Navigating Due Diligence in a Competitive Deal Process
A White Paper from Wharton PE/VC Partner, McGladrey
The M&A market is gaining momentum, with financing becoming more readily available and private equity firms actively seeking investments for their portfolios. However, the landscape has changed significantly in favor of sellers, as highly sought-after companies are getting offers from both strategic and financial buyers. Well-capitalized buyers currently outnumber high-quality sellers; therefore, companies that may have received one to three offers in the past are now fielding eight to 10 offers or more.
In this environment, sellers have the luxury of running a formal deal process with multiple parties, often only granting exclusivity very late in the process, if at all. This white paper provides strategies for buyers in non-exclusive situations to successfully navigate the M&A due diligence process while meeting responsibilities to investors and stakeholders.