Any organisation considering a deal needs to check all the assumptions
it is making about that deal. Financial due diligence provides peace of mind to
both corporate and financial buyers, by analysing and validating all the
financial, commercial, operational and strategic assumptions being made. It
uses past trading experience to form a view of the future and confirms that
there are no 'black holes'.
The
components of the service are revenue and market due diligence, synergy
validation, maintainable earnings, future cash flows and all operational
issues, as well as deal structuring.
scenario
- 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
The support we offer
- We enhance the
purchaser's understanding of the target business and therefore increase the
likelihood of the deal achieving its objectives
- We help you 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
- Commercial due diligence
involves a comprehensive review of the company's business plan in the context
of market conditions and the industry/competition
- Strategic reviews help
companies formulate their corporate strategy and diagnose poor performance,
providing a basis on which to prepare plans for improvement and to evaluate new
markets and potential acquisition targets. In the case of financial
institutions, they also help assess the feasibility of business plans