Financial Due Diligence
Our objective is to enable you to make an informed judgment to achieve your goals. We can help you decide whether or not to invest, the pricing of key risks, areas of focus for post deal and, ultimately, to assist you to maximise the value achieved by completing the acquisition. Due diligence, performed well, can not only assist you in identifying and managing risks but also add significant value to your deal.
We don’t believe in a ‘one size fits all’ approach to due diligence. Instead we believe it is critical to understand the strategic objectives of your transaction and tailor our approach to reflect the key issues and risks associated with your deal, as well as the unique characteristics of your organisation. This enables us to report on the issues that matter and provide you with the assurance you need to make the right investment decision.
Our dedicated due diligence specialists will work closely with you to understand the main drivers behind your deal, your strategic plan going forward and the associated risks to ensure the scope of work is robust and meets the needs of your management team, your shareholders and your lenders.
Understanding a target company’s historical financial performance, its on and off balance sheet assets and liabilities, and the key assumptions underpinning its projected performance is crucial to assessing the viability of an acquisition and will ultimately influence the price you are willing to pay.
Typically our due diligence reports focus on a critical analysis of the historical and projected financial performance, including:
- Analysis of the quality of the target’s revenues and profits over the last few years.
- Our assessment of maintainable EBITDA, adjusting for non-recurring or exceptional items.
- Our assessment of the working capital requirement of the business.
- Our assessment of net debt and debt-like items, directly impacting the price you pay.
- Review of tax compliance and tax-related risks.
- Our assessment of forecast profits and cash flows, including suggested sensitivities.
- Identification of potential ‘deal breakers’ and issues which may lead to a purchase price adjustment.
The scope of our diligence may vary from a full scope review to limited but targeted procedures, depending on your requirements.
Our due diligence teams have advised on a multitude of corporate and financial transactions for clients and institutions in the UK and internationally. The Forvis Mazars integrated international structure and our experienced and expert teams ensure our clients are fully equipped with the advice they need to make their deals a success.
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