ABSTRACT
Good management can add considerable value to an acquisition. Bad management can destroy more value than almost anything. Management due diligence provides an impartial, external perspective on management. Management appraisals seek to give an objective assessment of senior managers' capability, both individually and collectively, in the context of the challenges facing the business. Reports should give an insight into individual managers and into the capabilities of the senior management team as a team. The right management is critical to the success of a deal. It must make sense, therefore, to consider management appraisals in the due diligence programme. The objective is to assess management's capability, both as individuals and as a team, in the context of what needs to be achieved post-acquisition. A human resources professional should be able to benchmark the target management against managers in similar positions, with similar challenges, in other organisations.
