Justin Johnson, CFA, co-CEO and senior managing director, was a featured guest blogger for the National Association of Corporate Directors (NACD) with his published article titled “Avoid Deal Failure: Ask These Tough Questions Before Any Acquisition“. In the popular online blog, which is read by corporate board members of the NACD and other directors and c-suite-centric leaders, Johnson advises how board members can avoid unsuitable matches and support deals that are a good, long-term fit for their corporation.
In the blog Johnson notes, “Board members are unlikely to bless a strategic acquisition with the intent to destroy value. Yet, too often, that is exactly what ends up happening. A disciplined, thorough, and independent valuation analysis can make the difference in helping a board distinguish a suitable match from a bad one.” Johnson highlights how acquirers should consider establishing a baseline valuation matrix and pro forma value and touches on considerations to make related to other value impacts.
Read the full article on the NACD’s online blog.