Enterprise Reconstruction for M&A
Every acquisition contains costs, risks, and value that do not appear on any balance sheet. Four tools. Four numbers. One decision.
Start with Reconstruction Cost →Most due diligence measures inventory. Acquisition Recon measures dependencies, propagation, and hidden value — the three things that determine whether an integration succeeds.
The four tools — run in sequence
01Reconstruction Cost
What does it cost to reconstruct this enterprise if the people who know how it works leave on closing day?
Hidden Enterprise Value
What value exists in this enterprise that does not appear in the seller's financials — and what does it mean for your price?
Propagation Score
What breaks when integration begins? Which objects cascade through the enterprise — and where should you start?
Compliance Exposure
What compliance are you inheriting? Which regimes apply, what is the exposure cost, and what liability transfers at close?
The methodology
Acquisition Recon is built on Enterprise Reconstruction theory — a framework for making organizations observable before consequential decisions are made.
The four tools translate that theory into numbers that belong in a deal memo: the Reconstruction Ratio, the Net Acquisition Intelligence score, the Integration Shock Score, and the Compliance Exposure Score.
The methodology is derived from five books on enterprise architecture by Gloria Gallo — covering compensation economics, propagation theory, compliance infrastructure, and operational intelligence.
gloriagallo.com →