Realize the Full Value of Your M&A Transaction through Financial Due Diligence [Podcast]
January 22, 2016 - By: SC&H Group
In the following interview, Barry Offutt, an Audit Director with SC&H Group, and Bob Dillon, a Corporate Tax Director with SC&H Group, discuss the firm’s financial due diligence services for private equity funds and strategic buyers.
2015 was a record-breaking year for merger and acquisition (M&A) activity, and 2016 is shaping to be just as robust. The combination of affordable capital and historically lower borrowing rates have created attractive market conditions for both strategic and financial buyers.
However, there is a significant difference between the “modern buyer” and “buyers of transactions past” prior to the 2008 recession. Today’s buyers are spending more time and resources on deal due diligence.
Why? Private equity firms and corporate buyers want complete transparency into the financial and operational health of their acquisition targets. Today’s buyers need full assurance that they are making a sound investment, and their target is worth every potential dollar spent.
Managing Directors and Corporate Executives expect their financial and tax advisors to take their transaction evaluation services to the next level. Today, advisors must have the ability to closely analyze a deal while keeping a keen eye on risk mitigation, synergies, and future tax savings.
SC&H Group plays a valuable role in helping corporate and private equity buyers fully analyze acquisition targets to mitigate risk, identify synergies, and make recommendations for post-close efficiencies. SC&H Group’s Transaction Evaluation and Financial Due Diligence Services team has extensive accounting, tax, and corporate finance expertise that extends well beyond traditional audit and tax advisory services.
The team works to gain a true understanding of buyer and target operations, and provides critical insights into both strategic planning and financial analysis to benefit both parties post-merger/acquisition.
Our Financial Due Diligence team applies their expertise to ensure that the expected value of a transaction is realized. Our services include:
- Quality of earnings assessment
- Cash flow analysis
- Financial modeling
- Work paper review
- Review of on and off balance assets and liabilities
- Purchase price adjustment reviews
- Tax compliance, planning, and audit support
- Post-acquisition tax structuring
- Post-acquisition planning, strategy development, and integration
When you enlist the services of our team, the most experienced senior professionals remain engaged throughout the life of the relationship. Many of our senior experts have worked directly in the field as members of corporate buyer teams. We leverage this expertise to benefit our clients, as we understand the nuances involved with capital structuring, capital raising, tax structuring, M&A planning, field auditing, and strategic planning to make a deal a reality.
With increased corporate scrutiny and continuously changing regulations, it is critical to have experienced audit, tax, and business advisors as an extension of your deal team. At SC&H Group, we work proactively on your behalf to identify any and all financial, operational, and synergistic deal scenarios that could impact valuation and negotiations before they come problematic.
The end result of our services? Repeat, highly satisfied clients with comprehensive insights into their potential acquisition target. We provide buyers with complete clarity to mitigate risk while also providing a roadmap for post-close efficiencies that could lead to potential savings.
Ultimately, we partner with private equity firms and strategic buyers to create an integrated and streamlined entity moving forward.
To learn more about SC&H Group’s Transaction Evaluation and Financial Due Diligence Services for private equity groups and strategic buyers, please contact Barry and Bob here.