Whether you are considering buying or selling a business, financial and taxation due diligence is both a necessary and desirable process which is designed to provide significant comfort to all parties involved. It means that a qualified, independent expert has carried out a review of the business from the perspective of the proposed transaction.
Key elements of due diligence include:
• Confirmation that the management information used as the basis for the acquisition terms is reliable
• Reviewing historical earnings and establishing key profit drivers to determine the longer term sustainability of the business
• Analysis of the company’s working capital requirements and determination of the total cash requirement relative to the proposed acquisition
• Summary of the tax implications of the proposed acquisition
This process enables a detailed analysis of the proposed purchase price and legal structure of the transaction, specifically taking into account the client’s circumstances and goals.
Our Due Diligence team has extensive knowledge and considerable experience in providing financial and tax diligence to a range of clients. We have also worked with financial institutions which require third party confirmation that a lending proposition is fully thought through and supported by accurate trading and commercial assumptions.
We believe that tailoring the approach to due diligence is vital, ensuring the key commercial drivers of the company are identified and investigated rather than adopting a blanket approach. This methodology allows us to gain a detailed understanding of the strategic objectives of the acquisition and to determine whether these are in synergy with the business in question.