As part of acquisition due diligence, it is essential to:
- Validate the financial assumptions of the proposed transaction;
- Identify important issues early on in the process;
- Formulate the best, most accurate arguments to take into negotiations.
Wee see financial due diligence as more than just a bookkeeping analysis. We approach the transaction from the offer / letter of intent and help determine what exactly is being acquired. We analyse and interpret the company's historical & forward-looking financial information as prepared by the seller and take a close look at normalisations.
Our pragmatic approach is a vital part of maintaining a good relationship between the buyer and management.
Our research, combined with years of transaction experience, provide important input for the negotiation strategy. The main objectives of financial due diligence:
- Gain insight into the company's key value drivers.
- Identify financial risks and opportunities.
- Understand historical financial data, interim financial developments, and financial expectations for the future.
- Check the seller-provided figures that formed the foundation of the bid or letter of intent.
- Identify negotiation points and deal breakers to build a strong negotiating position with a solid narrative.
Business intelligence (BI) helps us create transparency in the available data – the reason why it is a standard part of our financial due diligence approach. BI also helps avoid unnecessarily straining relations with current management. Fewer questions means less work for management.
Maintaining focus post purchase with real-time insight into KPIs is easy with SINCERIUS Business Insight, our in-house developed BI tool. A single click gives you instant insight on one platform in all reports and analyses, including consolidation and foreign currencies. It is an invaluable tool that can help you generate better results, anticipate developments earlier, reduce costs in the long term, and be better prepared for a possible future sale.
We are dedicated professionals who know what it takes to make the right decision on an acquisition. Our wealth of experience means we know what to look for - the numbers as well as the world behind them. We investigate, interpret, and give clear, well-researched advice so buyers can make a proper assessment during the negotiation process.
We can also provide post-transaction services where necessary; we are always available to assist with due diligence work as part of a more extensive buy-and-build strategy. Our Performance Improvement team can also help improve margins, generate cost savings, optimise working capital management, and improve operational processes. We take a concrete, practical, hands-on approach - exactly what our customers have come to expect from us.