By Mike Myatt, Chief StrategyOfficer, N2growthAs much as you wish it might be so, duediligence is really not an optional consideration. Have you evermade a decision based upon what you thought was a thoroughunderstanding of all pertinent information only to find out afterthe fact that you didn't know as much as you thought you did? It'snot much fun to find yourself on the wrong side of the informationgap...Incorrect data, omissions, information that is biased orskewed, misrepresentations, misunderstandings, or any number ofother scenarios that lead to the creation of information gapscan be very costly in today's business environment. In this week'scolumn I'll discuss the critical nature due diligence...Qualityinformation enables good decisioning. While at face valuethis would appear to be a rational statement, the problem liesin the fact that it is also a relative statement...Over the yearsI've witnessed business people that make critical decisions basedon nothing more than gut feel or instinct. I've observedothers that rely on the use of detailed internalchecklists and/or processes to validate their assessments, and I'veknown others who won't make a critical decision unlessthey hire third party professionals to conduct due diligence ontheir behalf. Regardless of your method (or lack thereof) managinginformation and decisioning risk has never been moreimportant than it is today.With the constant pressure tocompress transaction time frames in an effort to remaincompetitive, many firms are actually doing less duediligence on larger transactions involving more potentialrisk...While this may sound ridiculous, the sad truth is that it isa scenario which is all too common. Hedge funds, venturecapital and private equity firms, asset managers, investmentbanks, or corporations involved in anything from earlystage investments to real estate transactions to mergers andacquisitions have intense pressure to get deals closed quicklyin a market that has never been more complex tonavigate. While you by no means should ignore duediligence, you also cannot allow yourself to fall prey to beingparalyzed by analysis paralysis. To balance the main topic of thispost with the transactional realities present in today's marketyou should also read a previous post entitled "Timing IsEverything." Let's put aside the obvious reason forthorough due diligence (making a good deal), firms that don't haverock solid due diligence capabilities may find themselves inarbitration, litigation or under the scrutiny of regulators asa result of poor decisions. Public companies dealing withSarbanes-Oxley should be terrified of not crossing every "t" anddotting every "i"...Bottom line...No amount of due diligence canprotect you against flawed decisions or a bad deal, but if athorough due diligence effort can manage or transfer risk inthe majority of situations it is well worth the time, effort andcost to do it properly. If you short cut the process you'll likelyfind yourself being held accountable for that decisionsomeday...