Due diligence is crucial for organisations looking into mergers and acquisitions so as to effectively manage the significant associated risks. Our due diligence process is driven by the requirements and needs of the client.
We adopt a commercial approach, interpreting and prioritizing issues in relation to their impact on the deal. Investigation work is carried out on site and is tailored to meet the client’s needs.
Why You Might Need Our Help
Buying a business can be a great way to expand by gaining access to new markets and new customers, acquire new expertise and add to your product range. However if not done properly, you can inherit lots of legacy issues and not achieve the gains you wish to reap.
Here are just a few areas to consider:
- Are there any issues in the business I am buying? – It is vital that a detailed due diligence is performed, be it financial, legal or tax so that any issues are highlighted in advance.
- Management and key talent – Who are the key management and talent that are adding value to the business? Will they stay? If the owner is leaving the business, how will this impact the business?
- Business integration – business combinations are never easy, be it combining workforce, integrating IT systems, or synchronising business process or cutting costs. A plan is necessary to ensure all aspects are covered so that you can extract the most value from the new business.
How We Can Help
We can help you by identifying potential targets and approaching the target company on behalf of our clients. We can also provide financial, valuation and tax due diligence assignments which will highlight key issues in the target company. In general, we review the following:
Business operations of the business
External business environment
Historic and current trading
Financial projections and valuation assumptions
Taxation matters such as providing tax advice on optimal business structure post acquisition
Management team and other key employees
If not done properly, you can inherit lots of legacy issues and not achieve the gains you wish to reap.