If you can’t fix it. You don’t have an answer. Does it make any difference that you know the problem?

Reviewing a due-diligence effort, I noticed several questions on the acquirers template that had me wondering what the plan would be if the answer were “YES.” Would the acquisition be cancelled or altered? If so, how? What is it that the buyout firm would do with the information?

Their answer was that the purchase would go through, that the template was standard business practice. The answers to it, indicated problems that may have to be addressed. I then asked what the solutions would be to “several hypothetical wrong answers here.” No one had answers. Meaning, they didn’t have at hand, prompt solutions they could provide. So, they were uncovering problems, that they didn’t have solutions to, and they were asking questions that wouldn’t alter the decision. Aren’t roomfuls of MBAs great?