There are three key takeaways that can be learned from HP’s Acquisition of Autonomy:
Locate, identify and assess the contracts that are being acquired as they can make or break an M&A transaction.
For HP, missing contracts and hidden terms played a huge role in this dispute. Aside from having full visibility to its contract portfolio, it would have also been beneficial for HP to know what was in each contract and what was missing from them.
2. Be equipped – Have the right solution to facilitate due diligence. HP had all the advisors for an M&A transaction, but didn’t know what contracts needed attention and where focus was needed in the extremely limited time.
3. Don’t rush – Due diligence does not need to be rushed under market pressure if the right combination of technology and people are in place. By implementing the right combination of technology and people needed to proactively review acquired contracts, more thorough due diligence can be done in a fraction of the time.