New York, NY, sixteenth September 2025, ZEX PR WIRE– In a enterprise local weather outlined by fast-moving offers and heightened competitors, seasoned govt and advisor Frank Okunak is asking on founders, non-public fairness leaders, and company boards to return to the basics of due diligence earlier than closing acquisitions.
Okunak, who has suggested each multinational companies and growth-stage companies via acquisitions and integrations, warns that too many offers are pushed by momentum and imaginative and prescient whereas overlooking the vital self-discipline of rigorous evaluate. “Acquisitions shouldn’t be a big gamble,” Okunak says. “A well-thought-out due diligence course of isn’t paperwork—it’s the bedrock of a profitable transaction.”
Why Due Diligence Issues Extra Than Ever
With international M&A exercise rebounding in 2025 after a slowdown in earlier years, strain to shut offers rapidly has intensified. But, in keeping with Okunak, the dangers of shifting too quick are increased than ever.
“Offers collapse not as a result of the goal lacked potential, however as a result of the basics weren’t scrutinized,” Okunak explains. “The acquisition course of should prolong past pleasure over synergies. It should reply the arduous questions: What are we actually shopping for? Can we maintain it? Will this firm strengthen or weaken us in 5 years?”
A Framework for Evaluation: 5 Core Pillars
Okunak highlights 5 important parts of the due diligence course of:
- Shopper Listing
Income projections are solely as sturdy because the relationships behind them. A cautious evaluate of the consumer checklist ought to assess consumer focus, renewal probability, and total satisfaction.
“Too typically, patrons assume income will proceed with out interruption,” Okunak notes. “But when 40% of income is determined by one or two shoppers, that’s a fragility you can’t afford to disregard. Robust acquisitions are constructed on diversified, loyal buyer bases.”
- Monetary Statements
Monetary diligence goes past reviewing top-line development. It requires forensic evaluation of margins, recurring income, and liabilities.
Okunak urges acquirers to dig deep into audited statements, steadiness sheets, and money stream patterns. “Numbers inform a narrative,” he says. “Wholesome EBITDA margins are essential, however so is knowing whether or not they’re sustainable or inflated by one-off occasions. A disciplined purchaser stress-tests assumptions to make sure the financials maintain below totally different eventualities.”
- Expertise Pool
In at present’s data economic system, individuals are typically essentially the most helpful asset being acquired. Okunak stresses that tradition match, retention danger, and management bench power needs to be central to diligence.
“Traders could deal with expertise or contracts, however expertise makes or breaks integration,” Okunak argues. “If the senior staff leaves post-acquisition, you could be left with a shell of the corporate you thought you got. A strong expertise evaluation should be a part of each deal.”
- Belongings and Liabilities
A disciplined purchaser evaluates not simply what’s owned, however what’s owed. From mental property and actual property to contingent liabilities and litigation publicity, Okunak emphasizes that this evaluate shapes each valuation and danger profile.
“Belongings are solely helpful if they’re actually defensible,” he cautions. “And liabilities can sink even essentially the most promising acquisition. Overlooking this step is like shopping for a home with out checking the muse.”
- Succession Planning
Okunak believes succession is usually essentially the most ignored dimension of diligence. If the present management is central to consumer relationships and operations, the customer should guarantee a reputable succession plan.
“Management transitions can destabilize income, tradition, and consumer belief,” he explains. “Sensible patrons plan for continuity lengthy earlier than the ink dries. You may’t afford management gaps within the first 12 months of possession.”
The Value of Neglect
Okunak factors to high-profile acquisitions which have unraveled resulting from insufficient diligence: inflated valuations, cultural mismatches, or sudden consumer departures. “Behind each failed deal is a lacking self-discipline,” he observes. “Skipping diligence isn’t a shortcut—it’s a setup for long-term loss.”
For smaller companies and personal equity-backed rollups, the stakes are even increased. With out the protection internet of enormous steadiness sheets, one dangerous acquisition can jeopardize years of development. “Founders should resist the strain to shut quick,” Okunak advises. “Disciplined diligence could delay the celebration, nevertheless it dramatically will increase the percentages of success.”
Past the Guidelines: Self-discipline as Tradition
Whereas checklists matter, Okunak emphasizes that diligence can be a mindset. “It’s about constructing a tradition of accountability,” he says. “Each acquisition needs to be examined via the lens of sustainability. Will this deal stand as much as the strain of integration, consumer expectations, and market shifts?”
Okunak believes that self-discipline ought to prolong past closing. “Publish-acquisition integration needs to be deliberate throughout diligence, not after the deal is finished. That features aligning expertise incentives, consumer communication, and methods integration. Execution is the place most offers stumble, and diligence is the one solution to stop it.”
A Message for CEOs and Boards
For Okunak, the accountability lies squarely with CEOs and boards. “You can not delegate away accountability for diligence,” he insists. “Leaders set the tone. They have to demand thorough opinions of consumer focus, monetary sustainability, expertise retention, and succession readiness. Something much less is negligence.”
He acknowledges that deal-making typically carries the thrill of imaginative and prescient and development, however insists that solely self-discipline turns acquisitions into long-term wins. “Nice offers aren’t about velocity,” Okunak concludes. “They’re about readability. When the basics are revered, acquisitions don’t simply broaden — they endure.”
About Frank Okunak
Frank Okunak is a seasoned govt, advisor, and former CFO and COO of Weber Shandwick, one of many world’s main PR and digital companies. With many years of expertise in company technique, finance, and M&A advisory, Okunak has guided startups, companies, and personal fairness companies via development and integration. His counsel emphasizes self-discipline, monetary rigor, and long-term sustainability because the cornerstones of enterprise success.
