Due Diligence Services for Buyers
While we represent sellers to help maximize after-tax value for their firms and facilitate sales transactions where we are compensated by commission, we have often been asked to represent buyers. In our role as advisors to so many sellers we never want to risk our reputation or create conflicts of interest and therefore we will not represent a buyer as a broker.
However, because our deep industry knowledge and expertise and our backgrounds in finance, accounting and auditing we are well positioned to perform due diligence services for buyers once they have identified a target and have had an offer accepted. We do this on a project basis and are compensated based on the size and scope of services required.
Our pre transaction due diligence processes help to reveal risks and opportunities so buyers can make informed decisions on how to proceed or retreat from a deal. These services include:
Assess the target’s earnings and cash-flow quality
Analyze the quality of assets and liabilities being acquired or assumed
Evaluate the quality of working capital and liquidity
Identify internal control weaknesses of systems and personnel
Present the buyer with a report cataloging our findings
Throughout the process we collaborate with the buyer and their advisors to bring due diligence to an efficient close so the deal can either proceed, be renegotiated or cancel the deal based on our findings.