An extended session on “Making Intangibles Count” on day one of next week’s conference is well timed. As Mike Nall says in his piece on Due Diligence in sell-side mergers and acquisitions in the latest issue of M & A magazine, “more and more of a business’s assets being acquired are intangible." In fact, up to 80% of a firm’s value can come from its Customer Base. As the primary revenue generating asset, it is critical to examine a target company’s relationships with its customers in the Due Diligence process. Critical questions needing answers are:
- How strong are the company's relationships with its customers?
- What is the mix of Loyal, Neutral & Vulnerable customers?
- Is it favorable or unfavorable to securing future revenue?
- What is the probability a...