Integration & outside consulting firm for due diligence
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When engaging an outside consulting firm for M&A due diligence, how should the firm and the internal cross-functional team collaborate to ensure a smooth integration process?
We’ve brought consults directly into the DD and IMO processes with the x-functional team. Consultants should essentially be the “right hand person” for the IMO Leader from DD, to IMO kickoff, to weekly functional meetings, to SteerCo meetings (and even BoD meetings if support is needed). The consultants should provide guidance throughout the process, help manage checklists, and coordinate regular IMO and SteerCo updates.
Normally you would want consultants to provide the framework and best in class tools for the transaction as well to advise in the best strategy depending on the specific company being integrated, but at the same time it is a critical role to involve long term employees who will deploy strategies and manage the tools, it is essential that people within the company have a good understanding on all decisions made and can find historical records and transition plans.
When working with an external consulting firm during M&A due diligence, I would suggest to start with a joint kick-off call to align on the joint goals for the project, define roles, and communication approach (i.e. ways-of-working).
I would try to make sure the consultants are embedded into internal workstreams. This can ensure smooth collaboration and knowledge sharing.
I would also use a shared platform for documents and updates to keep everyone on the same page – e.g. through MS Teams.
Weekly check-in calls and clear escalation paths can also help resolve issues quickly and keep up the momentum of the team. This setup builds trust and keeps the integration process efficient and focused.I would ensure that the due diligence team consisted of professionals with a proper mix of (a) accounting, (b) financial analysis skills, and (c) keen insight as to how operations of businesses in specific industries should be evaluated. The more experience on the team, the better.
I fully agree with the points above, especially around early alignment and embedding consultants into the workstreams. What I’ve found helpful is to make sure consultants don’t just hand over frameworks, but help translate due diligence findings into the first 100-day integration plan.
That bridge between DD and execution is often where things fall apart. The internal team owns the long-term execution, so consultants should work side-by-side with them to define early priorities, risks and dependencies before close. This keeps the learning curve short and gives the internal IMO a running start on Day 1.
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