SDG worked with the M&A practice of a leading investment bank to analyze the value and risk drivers of acquisition transactions. Using available and proprietary information, we conducted a Decision Quality (DQ) analysis in parallel with the traditional work done by the investment bank. The DQ analysis differed from a traditional approach by being a comprehensive, “bottom-up” view of the underlying drivers of value and explicitly taking into account future market uncertainty, customer acceptance, and execution risk.

Both analyses were completed in the same tight timeframe, however, in one case SDG's DQ analysis revealed a fatal flaw in the “pitch” document created by the investment bank representing the company for sale. Not only did the traditional analysis fail to reveal this issue, but, in fact, the problem was so severe that the client decided to immediately withdraw from the deal, thus avoiding a potentially value-destroying acquisition.