Communication Due Diligence

1. Definition
Communication Due Diligence analyzes and evaluates communication performance in an organization in terms of an intended business transaction. It is embedded in the context of an extensive, if possible holistic corporate analysis prior to corporate evaluation and is part of general due diligence. Communication Due Diligence is also an element in the detailed and systematic analysis of qualitative and quantitative information and data of an organization with the goal of drawing a meaningful overall picture of the company.

2. Applications
Due Diligence is conducted prior to the purchase of business or acquisition of stakes in a business. The main area of application is mergers and acquisitions. Due diligence includes external and internal perspectives on the company, including its place in the industry, technical, organizational, environmental, psychological, legal, fiscal, and financial circumstances, and also its status and corporate communication setup (communication performance). 

3. Implementation
The method is typically carried out by external independent reviewers in order to attain an objective evaluation and analysis of corporate structures and communication performance. Methods deployed include observation, guided interviews with key persons, and structured questionnaires that gauge communication performance among employees, between management and staff, and between customers and service. Existing publications and other media (internet, intranet), media coverage and opinions of external persons are likewise included.

The expert reviewer investigates on site and communicates directly with staff. All information collected is evaluated and feeds into a profile of the communication performance of the analyzed organization. The time and cost of Communication Due Diligence varies significantly depending on the size of the organization, purpose and extent of communication activities.

4. Indicators

5. Service providers in Germany
J|P KOM, Düsseldorf / Frankfurt/Main

6. Links
Charles Mills Consulting: Legal Definition of Due Diligence.

Entrepreneur Encyclopedia: Due Diligence.

7. Further reading

8. Case studies