Financial due diligence is a critical step in the acquisition or sale process. It provides an independent assessment of the business from which a potential investor or funder is able to inform their decision.
The investigation is conducted by our Transaction Support Team which has extensive experience in a wide variety of transactions across sectors. Our report addresses your requirements in a clear concise format, highlighting fundamental concerns.
We appreciate the importance of working to a tight timetable which is why we ensure regular two-way communication and agree the scope of the review at the outset. We take great care to deliver reports that reflect the client’s needs but at the same time remain objective. If we uncover critical issues we bring these to your attention immediately and work with you to evaluate the implications and assess how best to proceed.
Acquisition Due Diligence
Acquisition due diligence provides you with reassurance about the business you are acquiring and helps to identify potential risks. The scope of a due diligence review is based on your particular requirements. However, we always aim to address several fundamental questions:
- Is the deal structured in the most appropriate way?
- What are the tax consequences of the deal now and in the future?
- How accurate are forecasts?
- Is pension funding an issue?
- Are there risks around employment and staffing matters?
- Are there any deal breakers?
- What warranties and indemnities need to be secured?
- Are projections accurate?
Our team conduct due diligence on behalf of purchasers, banks and private equity providers. Through other specialist teams in the firm, we are also able to provide HR due diligence.
Vendor Due Diligence
Vendor due diligence is increasingly seen to be an important factor in the successful sale of a business. It provides an independent assessment which can answer potential questions and reassure prospective buyers. These reviews can help to establish a fair sale price and identify risks early on in the process.
Our due diligence experts are well versed in preparing these reports. We understand issues from the vendors perspective but are also able to advise on what prospective buyers will be looking for.
Our vendor due diligence reports aim to:
- Provide the vendor with a tool to further the selling process
- Enable the vendor to address potential concerns before purchasers are involved
- Ensure that potentially sensitive information is dealt with objectively