M&A Due Diligence

The Value Add of Due Diligence

Due diligence is a critical to successful M&A transactions because the process allows the buyer to validate all relevant information about the target firm such as contracts, performance, financial position, and customers. This also allows the buyer assess their potential risks once the assume ownership of the target company. By conducting due diligence, the buyer is better equipped to make an informed decision about the deal they are pursuing.

By conducting due diligence, the buyer can gain an understanding beyond the financials and revenue projections for the business. Proper due diligence provides fidelity on other areas such as the business model, how the company conducts business, types of engagements the firm currently has experience in, staffing model, teaming relationships, market competitiveness, and current talent pool.

Furthermore, the due diligence process helps buyer understand potential synergies, scalability of the business and what opportunities exist to scale up business with targets current customer base. After due diligence, buyers can also look at ways to reduce the overall expenses by eliminating or consolidating redundant processes and systems to increase profitability in the transaction.

How We Add Value

Our support services include:

• Financial Statement Review
• Working Capital Review
• Review of Target Company Assets/Liabilities
• Aging Accounts Receivable Review