Apologies for putting Claudia in the spotlight, but I asked her to type up this wow paragraph from her essay on bullet point 3:-
"One of the major factors which can seriously influence the success of mergers and takeovers is due diligence. If due diligence is not done thoroughly, the prospect of a merger or takeover may not be as positive as the bidding company thinks. For example, when RBS acquired ABN AMRO, they did not carry out satisfactory due diligence. They did not realise how many sub prime related investments were associated with ABN AMRO, and these investments went bad after the takeover had gone through, causing terrible consequences for RBS. Eventually, £1.5 billion had to be written off. If thorough due diligence had taken place before RBS made their offer, RBS could have walked away from the deal and the situation could have been avoided".
C Pallett, 2012
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