CORPORATE INTELLIGENCE ENHANCES THE M&A PROCESS

EAGLE SHARK A/S

The M&A (mergers & acquisitions) process includes in depth analyzing of financial figures, business processes, contracts etc. This is typically done by internal and external staff specializing in law and accounting, after which the management and owners can evaluate what business opportunities the acquisition or merger creates and what financial and legal challenges the M&A may arise.

During the past 10 years EAGLE SHARK has assisted national and international companies in documenting evidence in cases of legal disputes. It has (unfortunately) often shown to be key employees who has used their position, in other cases external IT attacks that has been very damaging to the finances and brand of our client.

Our experience shows a clear tendency of us being involved after a situation has be detected by the client instead of being part of a preventive process and a “clean-up” process is considerably more expensive than a preventive process.

To hire the world's most expensive M&A consultants is still no guarantee of a successful acquisition or merger.

M&As has a particularly high risk of problems. Studies has shown that at least 60% of all merger and acquisition is subsequently postponed, and in at least 70% of all cases there is no return of investment (source; Peter Zink Secher).

With our knowledge and experience we can only recommend is to do in depth research that covers the two most frequent risks we see with our clients, which is not finance or law but issues with key employees and IT security.

In addition to the regular M&A process, we recommend asking critical questions that go beyond economics and law and demand data from the consultants, who perform the analytical process.

Background study & IT security analysis:

In-depth investigations that go beyond the "ordinary" due diligence should be adapted to the individual company and industry, where the most optimal process takes place through close dialog with management and other key staff in the company.

The two actions we consider to be the minimum to perform whatever the business type is:

1) Investigate key personnel using via background investigation of them to identify any information that may burden or harm the company in the future.

2) Review of the company's resilience to IT attacks and investigate whether there have been previous compromises of IT systems which are undiscovered.

(In average, Danish companies spent minimum 100 days before an IT attack is discovered).

DANISH SPECIAL FORCES UNITED CONSULTING