DUE DILIGENCE AND SELF-EXAMINATION: HOW SMART COMPANIES ARE AVOIDING RISK

Investors and shareholders expect companies and CEOs to make smart investments and address internal vulnerabilities. Due diligence, whether on a prospective partner or on your own company, is the only way to avoid the hidden risks that have caused needless financial, reputational and legal problems for many companies.

IN TIGHTENING ECONOMIES, MARKET INTELLIGENCE BECOMES A MUST

Record high oil prices, rising food costs, the US mortgage crisis, weak financial markets and global inflation all characterize 2008, rattling the very essence of our consumption-driven economies. These difficult times make us rethink our habits as both consumers and as business people operating in the broader global play. Just as shifting economic currents are molding consumption habits, so too are they challenging companies to rethink their modus operandi.

REPUTATIONAL GAPS: IDENTIFYING PARTNERING RISKS AND OPPORTUNITIES

In the world of mergers and acquisitions, companies are often acquired at prices which reflect high multiples of earnings, revenue or assets. This premium in large part represents the value which is assigned to intangibles, and a major contributor to this is the company’s reputation in the market. Understanding the strength of a company’s reputation can help determine a negotiation strategy, or even uncover cause to pull out.