A leading global asset manager engaged ACA to conduct pre-deal performance due diligence as part of a planned acquisition of a peer firm. The client needed independent validation of the target’s performance data, reporting infrastructure, and compliance with industry standards to mitigate transaction risk and inform integration planning.
The Challenge
As part of its M&A process, the acquiring firm required a comprehensive review of the target’s:
- Performance calculation methodologies
- Performance reporting processes and disclosures
- Books and records supporting historical results
- Data governance and composite structures
- Alignment with Global Investment Performance Standards (GIPS®)
- Overall readiness for integration across systems and teams
The client sought clarity on the reliability of the target’s performance data and a detailed understanding of risks that could influence the transaction.
Our Approach
ACA’s Performance Services team conducted a full-scope, independent due diligence review designed to uncover risks, validate methodologies, and provide actionable integration insights.
1. Methodology and Reporting Review Assessed:
- Performance calculation methodologies
- Disclosure completeness and supporting documentation
- Compliance with GIPS® and applicable regulatory guidance
2. Data Governance and Records Assessment Included:
- Evaluating composite structures and governance protocols
- Reviewing books and records to validate historical performance
- Identifying gaps in controls, documentation, and oversight
3. Integration and Risk Analysis Reviewed:
- Compatibility of systems, data models, and reporting frameworks across the two firms
- Delivered recommendations to support integration planning
The Impact
- Risk Mitigation
Our analysis identified key performance-related risks that could affect the transaction or introduce future compliance exposure. - Integration Readiness
The client received clear guidance on how methodologies, datasets, and reporting frameworks should align to ensure a smooth transition post-acquisition. - Informed Decision Making
Armed with validated performance data and a clear understanding of oversight gaps, the client was able to proceed confidently with the deal.
Results at a Glance
- Independent validation of the target’s performance figures
- Detailed assessment of methodology, governance, and disclosures
- Clear understanding of GIPS® and regulatory considerations
- Actionable insights for integration across systems and reporting
- Confident decision making supported by ACA’s expertise
ConclusionÂ
Through ACA’s comprehensive pre-deal performance due diligence review, the client gained a validated and transparent understanding of the target firm’s performance data, methodologies, and oversight controls. ACA’s independent assessment identified meaningful risks, clarified compliance considerations, and equipped the client with the insight needed to proceed confidently with the transaction. By delivering actionable recommendations and integration guidance, ACA helped ensure that post-acquisition alignment across systems, reporting frameworks, and governance structures could be executed efficiently and with reduced operational and regulatory risk.Â
Ultimately, ACA’s expertise strengthened the client’s decision-making process and laid a solid foundation for a successful acquisition and future integration.Â
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