Contemplating a due-diligence process can be a stressful and uncertain period for any business owner. In particular, for those making acquisitions for the first time. We start from the premise that you will usually know more about the target than we do and that our input will be valuable to you only if it is helpful in areas in which you are not experienced or in which you need further resource or else which merely need validation by an independent party. We concentrate just as much on what is not there as much as the information that is presented. We focus on Financial Due Diligence and leave Legal and Commercial Due Diligence to other experts in that field (who we can introduce as our preferred suppliers).
So what is involved in a Due Diligence process?
In its simplest form, before an acquisition can complete, the acquirer needs to understand what is being bought. We can play an important role in the evaluation of a target business, by preparing a financial and tax due diligence report. We then compile an independent review of the target to ensure you understand the financial and tax aspects of what you are acquiring. This helps determine the price to pay and will assists with raising finance. The review can look at historical information, forecast information, or just focus on key areas to suit you. We aim to provide reports of practical use, which will identify critical areas early to assist your understanding and decision making.
Is there an Advisory Element in Due Diligence?
Outside of the financial due diligence process described above, our help is most often needed in identifying and understanding risk, in helping to find solutions to mitigate it and also in advising on tax issues and tax planning. Some of the more tricky issues that we often have to address are picked up by our experienced team of Partners and Directors who have worked on similar transactions over the years. This experience is comforting to our clients – in particular, those ‘first-timers’.