Family Offices and Direct Investments: Due Diligence Best Practices and Costly Mistakes to Avoid

What do families tend to underestimate or overlook in the due diligence process? A single misstep in understanding the market the target business operates in, evaluating the sustainability of product line and customer level profitability, or assessing and motivating the management team, can wipe out a generation of wealth and reputation.

 

Jason Abbott and Bill Clogg from FTI Consulting’s Transaction Services practice led a discussion on the most critical commercial, operational and financial due diligence steps involved in acquiring a business or property. The discussion focused on the most common stages in performing due diligence, including how approaching due diligence from a cash flow perspective differs from an asset valuation perspective.