All business transactions contain elements of risk and opportunity. The success of a proposed business deal or transaction is the direct result of the financial structure and operational analysis. Being alerted to potential problems can minimize the risks and avoid delays with the proposed transaction.
Buyers, lenders and sellers involved in mergers or acquisitions must identify the risks and the opportunities associated with the business under consideration. Conducting effective due diligence can help buyers and lenders structure strategic transactions and avoid costly mistakes. It can also help sellers better understand the strengths and weaknesses of their position pursuant to a deal.
Buyers
There is a risk of paying very much as a buyer, facing litigation or finding out late that the deal will not work as expected. There is also the opportunity of increasing market share, profitability and competitiveness.
In any merger or acquisition, financial due diligence is important not only for negotiation purposes but also to identify future growth opportunities and post-acquisition strategies. Our professionals will expose to possible risks and hidden costs, incorporate a unique blend of investigative, analytic and financial skills, with a focus on the strategic value of the target business that is the subject of the transaction.
Lenders
Lenders are often active participants in any merger or acquisition. Concerned primarily with the target business’s quality of collateral, our due diligence process is flexible and scalable to the specific demands of each transaction. We can help lenders assess the collateral supporting a loan as well as analyzing the dilution and other collection problems, contingent liabilities, accounting issues affecting current and future earnings.
How we can help
Our team can supply independent analysis and evaluation of the performance of a business so that you minimize your risk and maximize your returns. We provide financial due diligence and transaction support services to buyers, lenders and sellers in a variety of transactional situations.
We will address a range of strategic, financial, and operational issues as part of the due diligence process. We will assess the financial position of the target by reviewing the earnings history, cash flow, and future earnings, quality of its assets and liabilities, working capital, purchase price allocation.