Buy-Side Due Diligence

Any organisation considering a potential deal must evaluate all pertinent parameters of the investment. An unbiased financial and tax due diligence is necessary as it analyses and validates all financial, commercial, operational and strategic aspects of the deal. It uses past trading experience to form a view of the future and ensures that there are no 'black holes'. We assist you in identifying key business drivers and KPIs, value adjustments and other significant matters to ensure that you make an informed decision on the transaction.

Is this your situation?

• You want to add a new company to your existing portfolio.
• 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.
• 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 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.
• By helping you identify:
  • quality of earnings adjustments—sustained level of EBITDA going forward on a standalone basis.
  • potential debt-like items—highlight significant off-balance sheet liabilities, commitments and contingencies or other significant items including any potential tax liabilities that may affect value and crystallise in near future.
  • working capital trends and adjustments—working capital levels of the company, cashflow impact of movement in the working capital levels, estimating benchmarks and potential adjustments required to assess the normalised level of working capital required.
  • Impact analysis of pending tax assessments and litigations.
  • areas where specific indemnities and warranties may need to be obtained.