As a former Naval intelligence officer who served with, among other units, SEAL Team 8, we regularly used a process called “Red Teaming” to expose problems in our own plans and processes. We tasked people with outside perspectives – members of different branches or specialties, different ranks, or even civilians – with the sole purpose of exposing flaws and weaknesses in our plans. In the M&A world, we have a similar concept – reverse diligence – which is an overlooked – but critical – part of a successful sale. The goal of reverse diligence is to look at your business from the perspective of a potential acquirer. This lets you find problems and mitigate them in advance of going to market. Reverse diligence is critical to a successful exit for your clients.
Key topics to be discussed:
• What is Red Teaming?
• How can we adapt its principles to Reverse Diligence?
• Why is Reverse Diligence critical to a successful M&A process?
• What can we learn from Reverse Diligence – and how can we fix problems ahead of time?
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