Social mergers and acquisitions

IN corporate mergers and acquisitions, “due diligence” is a must. It is a process that determines the value of a company. Aside from the usual financial analysis based on accessible data, there is the search for hidden risks like litigation, assets that are overvalued or booked items being occupied by the sellers of the company, like the family home. Accountants, lawyers, credit rating agencies, banks, and auditors together arrive at a valuation that determines the real worth of the company. This due diligence does not include that unquantifiable entry simply called “goodwill,” which the seller adds without any supporting data — the brand equity is priceless.

In social mergers and acquisitions, more commonly known as marriages or partnerships, is due diligence also applicable? Dynastic families with comparable net worth move in the same circles and very early in the lives of their progenies, parents already plan mutually favorable pairing arrangements. Even here, fortunes may change, as family-owned conglomerates are gobbled up by politically well-connected upstarts from the South, so valuations need to be revised. What are the real assets left with the family?

With social media, old barriers have fallen, making entry into once sacrosanct enclaves more porous and less protected. The new fortune-hunters, who are also technologically savvy, no longer need to be physically accessible like dance instructors, gym trainers, bar hostesses, or caregivers. They can be Facebook or Viber friends or chat mates who