Due Diligence in M&A

CPA Management Accounting · 3:51

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Lyrics

[Verse 1]
When the deal's on the table and the stakes are high
Four pillars of due diligence reach up to the sky
Financial statements tell the story of the past
But we need to dig deeper, make sure value will last
Review the books, examine every line
Cash flow patterns and the bottom line

[Chorus]
Four F-L-O-S, that's the way we go
Financial Legal Operational Strategic flow
Risk and value, hand in hand
Due diligence helps us understand
F-L-O-S before you buy
Don't let hidden dangers fly by

[Verse 2]
Legal due diligence checks the company's ground
Contracts, licenses, lawsuits to be found
Intellectual property and compliance too
Regulatory issues that could come back on you
Title searches and employment law
Every legal risk that we foresaw

[Chorus]
Four F-L-O-S, that's the way we go
Financial Legal Operational Strategic flow
Risk and value, hand in hand
Due diligence helps us understand
F-L-O-S before you buy
Don't let hidden dangers fly by

[Verse 3]
Operational review looks at how things run
Management systems, processes, everyone
Supply chain strength and customer base
IT infrastructure and the market space
Quality control and production lines
Operational efficiency that truly shines

[Bridge]
Strategic fit is the final test
Will this deal serve our interests best
Synergies and market position strong
Cultural alignment all along
Valuation models, discounted flows
Multiple approaches, that's how it goes

[Chorus]
Four F-L-O-S, that's the way we go
Financial Legal Operational Strategic flow
Risk and value, hand in hand
Due diligence helps us understand
F-L-O-S before you buy
Don't let hidden dangers fly by

[Outro]
Before you sign and close the deal
Make sure the value is really real
Due diligence is your guiding light
F-L-O-S will keep you right

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