Arming a prospective acquirer and their backer(s) with reliable information enables them to make informed judgements before committing to the deal. Embracing the needs and risks of both acquirers and their backers, we react quickly and efficiently, working hard to ensure we provide the right amount of feedback to all parties when needed.
Making an acquisition or investment can yield huge rewards, but it is vital to ensure that the risks are highlighted to enable you to make a sound decision about whether to proceed with the transaction. Thorough and well executed due diligence is an important part of the assessment process and can help determine whether to proceed with an acquisition and, if so, how best to negotiate and structure it.
Areas that we may typically cover include:
- assessing the underlying profits and cashflow of the business
- analysing and commenting on the assets to be purchased and liabilities to be assumed
- identifying internal control weaknesses
- identifying areas of risk (and opportunity) that may require specific protection (through warranties and indemnities) in the Purchase Agreement
- reviewing the tax positions surrounding the acquisition.