Internal audit can add value to the M&A life cycle
How does it affect you?
A seller's financial statements are only as good as the risk and control environment beneath them.
Without internal audit's involvement, the acquiring organization will not know whether the control environment has sufficient rigor and the acquisition is properly valued.
Organizations often underestimate the challenges associated with the integration of a newly acquired company.
Internal audit can highlight:
- Potential finance, IT, HR or operational risks
- Gaps in the integration project management plan
- Opportunities for additional synergies that would boost the acquisition’s return on investment
- The impact the acquisition and integration may be having on other parts of the business
- Potential gaps in the combined internal control structure
Without internal audit’s insight, costs could include a loss of opportunity, additional investments to fix the missed risk and control issues, and more.