Financial due diligence - buy side

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All businesses involved in an acquisition need to ensure that the financial information they hold is as accurate as possible, not only to prevent paying too much but also to ensure that their governance and risk management objectives are met.
  • From the buyer’s perspective the quality of information available about a potential acquisition determines the ultimate success of a transaction. Without ensuring that the reported performance of a business reflects the reality, a deal may deliver less than first impressions suggest.
  • Financial due-diligence can help to identify and focus attention on the factors in the business that will be critical to its future success.
  • Public company boards’ governance responsibilities require them to ensure that all steps possible have been taken to identify any problematic issues in a potential acquisition.

Potential issues
  • You want to strengthen your company’s core business by acquiring rival products that are almost identical in function/performance to your own
  • You need to build on your company’s existing activities by purchasing complementary products
  • You want to purchase a company to gain access to its existing products in new markets, or to increase your customer base
  • You need to expand your company’s current portfolio of products and services through the acquisition of new ones - potentially to provide a hedge against the movements in the markets in which the company operates
  • You want to spread your company’s market risk by purchasing a company providing similar products or services in another country.

How we can support you
  • By enhancing the purchaser’s understanding of the target business and therefore increasing the likelihood of the deal achieving its objectives
  • By helping buyers to identify and understand critical success factors and therefore improve your understanding of all the relevant issues so that informed decisions can be made
  • By highlighting strengths that can be built upon or weaknesses that can be resolved.