Due Diligence

Successful mergers and acquisitions require buyers, sellers, and lenders to clearly understand their respective opportunities and risks. We conduct financial due diligence for buyers and sellers to help identify areas that affect deal negotiations. Such services include assessment of recurring earnings and quality of earnings, analysis of key revenue and cost drivers, critique of balance sheet exposures, input on closing deal structure, and assessment of operating working capital needs.

Proper due diligence helps buyers and their lenders structure transactions strategically, and helps sellers realize the strengths and weaknesses of their position.

Whether you are a buyer, lender, or seller, we can provide due diligence and other services to support your decision-making across a wide range of transactions.

For buyers, we focus on:

• Evaluating the past, present, and future financial performance of potential acquisitions, to ascertain normalized earnings and working capital and identify future growth opportunities to help the buyer determine purchase price
• Supporting the buyer and its advisors in reviewing and drafting the financial aspects of the purchase agreement including accounting definitions, representations, and the post-closing purchase price adjustment mechanism

For lenders, we focus on:

• Evaluating a potential acquisition’s financial reporting systems
• Assessing the collateral used to support a loan and analyzing accounts receivable, inventory, and cash flow

For sellers, we focus on:

• Preparing for the transaction process and identifying exposure areas to avoid or reduce value erosion
• Anticipating the “next questions” to reduce transaction delays

Contact us today to see how we can assist you in your next transaction.