Rigorous Methodology – Delivering Opportunities for Transactional Success
Purchasing or selling a business includes many important steps, one of which is proper investigation of the financial status of the business being considered for acquisition or sale. Reviewing financial records, working to minimize risk and exposure, and ultimately collaborating with a team of experts are vital steps a company must take in preparation for a transaction of this risk and importance. A successful transaction often begins with a detailed financial and accounting due diligence assessment. This assessment is performed by potential buyers in substantially all transactions but can also be of value to a potential seller as it allows the seller to understand a buyer’s view of the Company being held for sale and will also allow the potential seller to better understand whether or not the business is properly prepared and structured for sale. The time and effort devoted to this process can lead to a smoother sale process as it is designed to identify potential areas of disagreement early in the transaction process.
Our team’s depth of experience in the due diligence process helps our client’s understand the financial statement and target company performance required to develop strategic next steps in the transaction process. By gaining an upfront understanding of key financial issues, our client can adjust the terms of the proposed transaction and/or expand due diligence procedures in key areas identified all with the goal of completing a successful transaction on a timely basis. Proper due diligence may lead a potential seller to the realization the timing is not right to pursue a transaction – SC&H Group’s business advisors collaborate with you, and our strong advisory network to make the best strategic decision based on the current market status and your position in the market.
Buy Side Due Diligence Methodology
Our team works with you to evaluate the quality and sustainability of your target company’s reported earnings and cash flow, and ultimately provide an analysis of assets to be acquired. Objective due diligence leads to validation of financial, operational, and strategic factors in a deal providing our clients all aspects required to structure and ultimately negotiate a favorable transaction.
Our buy side clients benefit from our due diligence methodology and are provided with:
- An understanding of the target company’s financial position and key drivers of financial performance
- Confidence and transparency in the transactional process
- Timely and efficient understanding of key financial information
Sell Side Due Diligence Methodology
SC&H’s due diligence team can help you prepare your company for sale by identifying and addressing issues before a buyer is in the picture. Investing in sell side due diligence allows a business owner to understand key issues from the buyers perspective, prepare responses to buyer due diligence requests in a timely and accurate manner and to address any issues noted prior to the sale process and to provide clear and concise responses when buyers address areas of concern related to the company’s historical financial performance.
Our sell side clients benefit from our due diligence methodology and are provided:
- A more complete understanding of the company’s financial position
- Reduced concerns for the buyer through mitigation of items noted in the buyer diligence process
- Minimized risk of unforeseen issues due to the detailed understanding of your business gained in the process and our ability, as your advisors, to participate in the discussion and documentation of business issues as they arise in the due diligence process
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.