A Proven Approach – Improving Transactional Success With Comprehensive Due Diligence
Whether you’re looking to buy or sell, due diligence is a crucial part of every successful M&A deal. As business growth and competition in market continues to become more and more complex, financial and accounting transparency has never been more important in negotiating the sale or purchase of a business. A successful transaction begins with a detailed financial and accounting due diligence assessment.
Our team’s vast experience in the due diligence process helps you navigate the intricacies and challenges of buying or selling a business with confidence. Our thorough assessment process evaluates the finances of a business and reviews its records, uncovers and minimizes risk, and creates a collaborative environment to provide a successful and beneficial transaction. The approach we utilize is designed to provide you with an upfront understanding of any challenges or discrepancies that may surface during the course of the deal.
Buy Side Due Diligence
Our team works with you to evaluate the quality and sustainability of your target company’s reported earnings and cash flow, and ultimately provide a clear and comprehensive analysis of the assets you’re looking to acquire. Objective due diligence leads to the validation of financial, operational, and strategic factors in a deal, providing you with all the required aspects needed to structure and negotiate a favorable transaction.
Our proven approach to buy side due diligence provides:
- A clear understanding of the target company’s financial position and the key drivers influencing their financial performance.
- Confidence and transparency throughout the lifecycle of the transactional process, never once leaving you in the dark.
- A timely and efficient understanding of key financial information, so you can feel comfortable making the right decision.
- A customized tax process focused on key exposure areas in income taxes, state allocations, sales and use, personal property, etc.
Following our careful evaluation, the report is integrated and utilized by your lender or attorney. We are seasoned professionals who hold a keen understanding of what will be critical for both parties involved, and put that knowledge to work, making your transaction an efficient and beneficial process.
Sell Side Due Diligence
SC&H’s due diligence team will help prepare your company for sale by identifying and addressing issues before a buyer is in the picture. To make the transaction process as efficient as possible, it is best to know if there are any discrepancies in your financial reporting (GAAP, revenue recognition, etc.), net working capital, and tax reporting (income, state allocations, sales and use, personal property, etc.). These are all critical components to a deal that sellers often overlook. If you are looking to sell, it is important you find and address these issues before moving any further in the process.
Investing in sell side due diligence allows you to understand key issues from the prospective buyer’s point-of-view, giving you the foresight to prepare responses to buyer due diligence requests in a timely and accurate manner, and to address any issues noted prior to the sale process. We believe it’s important to develop a strategic and proactive approach that provides clear and concise responses to address any and all concerns a buyer may have about your financial performance.
Our proven approach to sell side due diligence provides:
- A complete understanding of your company’s financial position, before the sale process even begins.
- Reassurance and mitigation of any concerns made known by the buyer during the process, maintaining the highest level of transparency and trust.
- Minimal risk that unforeseen issues will arise during the course of the process, and our assured participation in the remediation of the issue.
M&A activity has been on the rise for years, and shows little sign of slowing down; therefore it is never too early to consider how your company can stand out through accurate and relevant intelligence in a transaction process. Given the competitive market conditions, implementing an effective and efficient due diligence process is vital to an organization’s growth strategy.
Mitigating underlying organizational, financial, security, and ultimately reputational risks, with the help of the due diligence professionals at SC&H, your business transaction is supported by credible advisors who can assist in the navigating the competitive and complex market.
If an acquisition or exit is part of your strategic plan, engaging in buy-side or sell-side financial due diligence is an important strategy to implement in your evaluation process. SC&H Group is here to help assure the value you acquire or provide a buyer is an optimal experience for both parties.