The AMA Handbook of Due Diligence [Hardcover]

William M. Crilly (Author), Andrew J. Sherman (Author)

Book Description

Publication Date: June 25, 2010 | ISBN-10: 081441382X | ISBN-13: 978-0814413821 | Edition: Revised and Updated Edition

The AMA Handbook of Due Diligence is the most complete guide available on how to properly perform a due diligence investigation — and radically improve the success rate of a pending corporate merger or acquisition. The new edition of this long-trusted resource includes a CD-ROM packed with almost 400 customizable forms and templates for recording and analyzing every possible operational or financial activity at any organization.

Extensively revised and updated, the book reflects significant changes in the financial landscape such as the Sarbanes-Oxley Act. There are specialized sections on joint ventures, franchises, and outsourcing, as well as new legal memo and form requirements, including data room index, preliminary diligence memorandum, and the Hart-Scott-Rodino questionnaire. Thorough and easy to use, this essential resource will ensure that every “t” is crossed, every “i” dotted…and no mistakes left out on the table.

Editorial Reviews

Review

“[T]his book can be useful for professional services practitioners looking for a refresher on various parts of the traditional M&A process, for professional services practitioners who want to build their own customized traditional forms and checklists, or for professionals or researchers looking for one of the very few books on traditional due diligence.” --Due Diligence Digest (Association of Due Diligence Professionals)

“… takes away a lot of that angst…help everyone from the due diligence novice to the expert… proven track record of AMA assures…it will be a good product.”— CarpeFactum

“… treacherous course of due diligence…fraught with booby traps…having a road map on which to execute your due diligence can help …authors provide a great road map.” —Law Insider

“…I have been involved in a number of transactions…this book…takes a very complicated and involved process and explains it in a way that is thorough, clear, and… concise.” – CEO Blog

Book Description

The AMA Handbook of Due Diligence is the most complete guide available on how to properly perform a due diligence investigation — and radically improve the success rate of a pending corporate merger or acquisition. The new edition of this long-trusted resource includes a CD-ROM packed with almost 400 customizable forms and templates for recording and analyzing every possible operational or financial activity at any organization.

Extensively revised and updated, the book reflects significant changes in the financial landscape such as the Sarbanes-Oxley Act. There are specialized sections on joint ventures, franchises, and outsourcing, as well as new legal memo and form requirements, including data room index, preliminary diligence memorandum, and the Hart-Scott-Rodino questionnaire. Thorough and easy to use, this essential resource will ensure that every “t” is crossed, every “i” dotted…and no mistakes left out on the table.

See all Editorial Reviews

Product Details

• Reading level: Ages 18 and up
  
• Hardcover: 848 pages
• Publisher: AMACOM; Revised and Updated Edition edition (June 25, 2010)
• Language: English
• ISBN-10: 081441382X
• ISBN-13: 978-0814413821
• Product Dimensions: 11 x 8.8 x 2.3 inches
• Shipping Weight: 4.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #562,933 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

4.0 out of 5 stars An Acquirers' must read, June 27, 2011

By 

Jim Estill (New York) - See all my reviews

This review is from: The AMA Handbook of Due Diligence (Hardcover)

Recently, I read a great book by William Crilly and Andrew Sherman called, The AMA Handbook of Due Diligence.

I have been involved in a number of transactions, both on the buy and sell side, and I like this book because it takes a very complicated and involved process and explains it in a way that is thorough, clear, and best of all, concise. This book focuses its attention on potential buyers, and can act as either a road map for the inexperienced acquirer, or a point of reinforcement for those who have experience in acquisition due diligence.

The process of performing due diligence on a targeted acquisition has two main parts, as I see them:

1. Analysis of the company itself. It is important to understand a company's financial statements (and whether they are truly representative), its current health, growth strategy, planned product expansion/improvements, and all other facets that are specific to the company.

2. Analysis of the industry in which the company operates. The book lays out very clearly the information that is necessary to understand where a specific company fits with regards to market share, barriers to growth, etc.

In order to effectively evaluate a company and its place in the industry, Crilly and Sherman note you must know:

· Where to look

· What to ask

· What tools to use

· Who to ask

· How to test premises/answers

· Who should ask

The process, the book explains, is just as much an art as it is a science. The "art" aspect of due diligence is the style and experience to know which questions to ask and how and when to ask them. The "science" comes in the form of preparation of comprehensive and customized checklists.

There is a section at the end of the book that includes these comprehensive checklists. They are very detailed and offer a great starting point for investigation of a potential transaction. From my experience I have a good general idea of what I am looking for in a company both in terms of profitability and competitive advantage, but also with regard to risk. However, these checklists provide an excellent foundation and, if utilized, can highlight the opportunity or red flags in a potential transaction. Buy the book just for the checklists.

Overall, a great, informative read.