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Deals and valuation service

Before you acquire another business, it is essential to carefully assess the selling company’s representations about its earnings, assets and liabilities. Due diligence also ensures that you don’t overpay and that you fully understand all the risks involved.

We conduct rigorous due diligence on behalf of clients considering a merger or acquisition.

Our process generally involves:

·         Validating all of the seller’s representations by thoroughly investigating and analyzing the target company’s assets, liabilities and historic earnings

·         Providing a formal report on our due diligence findings for your board of directors or investment committee

·         If required, conducting a post-closing audit of the target company’s balance sheet

We always work closely with your legal representatives and other advisors to make the entire process as efficient as possible.

Financial reviews

When we represent buyers, we typically:

·        Validate Pro-forma EBITDA

·        Justify “add-backs” and/or non-recurring expenses

·        Assess the appropriate amount of “normal” working capital

·        Test the reasonableness of forecasts and projections

·        Provide an independent review of the overall value established for the business

When we represent sellers, we typically:

·        Organize, maintain and provide due diligence materials to the buyer

·        Help negotiate business aspects of the definitive agreement

·        Provide an independent review of the overall value established for the business

Accounting reviews

We inspect the target company’s historical financial statements and accounting policies and procedures. These reviews usually cover:

·        Accounting systems and records

·        Internal accounting procedures

·        Internal financial statements

·        Outside accounting services

·        Represented balance sheets, including cash, accounts receivable, inventory, fixed assets, accounts payable, and contingent liabilities

·        Represented income statements such as proper revenue and expense recognition

·        Tax liabilities and obligations

Business reviews

We can investigate specific areas of concern about the target company’s industry and operations. These reviews provide an in-depth analysis of the target company’s:

·        Industry

·        Competitive environment

·        Products and services

·        Customers

·        Key suppliers

·        Sales and marketing

·        Information technology systems

·        Human resources issues, including background checks

Our due diligence investigations often provide negotiating leverage to our clients, resulting in better pricing and/or terms and a better awareness of the challenges and issues facing the organisation.

By combining these services with our experience, expertise and in-depth commitment to our clients’ best interests, we help closely held businesses, private equity funds, small public companies, high net-worth individual investors, and middle-market investment banks complete the essential due diligence activities they need for successful M&A transactions.

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