Financial Diligence in M&A | Amr Abdelaziz w/ Kison Patel
Finance is arguably the most critical part of the due diligence process. Almost every transaction comes down to the numbers unless it's a pure IP deal. Conducting effective financial diligence in M&A is crucial to every acquisition's success. In this episode of the M&A Science Podcast, Amr Abdelaziz, Senior Director, M&A Finance at Equinix, talks about financial diligence in M&A. Liked today's episode? Unlock over 50 courses taught by top-tier M&A practitioners by joining the M&A Science Academy. Use code “podcast” on the sign-up page for a 30% discount, available on either monthly or annual plans. https://www.mascience.com/academy Want to learn about upcoming interviews, events, and industry trends? Sign up for our weekly newsletter. https://www.mascience.com/newsletter-... If you’re a head of corporate development and looking to build up a world-class M&A team, reach out to me at [email protected]. This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/ Bookmarks 00:00 Intro 01:19 Background 06:32 Role of finance in M&A 11:25 Timeline of the deal 13:30 How deep do you go in the pre-sign phase? 16:03 IOI vs. LOI 17:50 When do you building this internal QofE? 21:05 Discrepancy between the QofE presented from the sell side versus what you derive 23:19 Material change post-LOI 25:09 Taxes 26:57 Have you seen the auction process change over the years? 31:09 Advice for CEO about financial diligence 34:31 First thing you wanna dig into in doing the diligence? 37:34 Do you create an interpretation of the projections? 39:55 Relationship component 42:36 What are other things that you negotiate? 45:57 Working with the legal team 48:31 What about HR, what do they do or how do you work? 50:24 Other functions that you work with 51:38 What happens after close? 54:50 Impairments 58:25 Craziest thing in M&A __________________________________________________ Website: http://mascience.com/ Linkedin: / mascience Twitter: / m_a_science Facebook: / masciencepodcast __________________________________________________________ ABOUT M&A SCIENCE M&A Science is the world’s first community resource for M&A tips, techniques, and strategies to achieve desired outcomes and better success. We bring you behind the scene stories, proven techniques, and key takeaways of real-life M&A deals. For more exclusive content from the industry's top experts, visit mascience.com
