Most regrettable acquisitions constitute due diligence failures. A fundamental problem when studying and investigating a business is the plethora of information obtained, but not sorted, to identify the most essential. That is why you need an advisory firm that understands your needs and is reliable.
We work with venture capital and private equity firms and their portfolio companies ranging in various sizes. Our transaction advisory professionals are trained to go beyond the historical and financial data analysis of the target company. We also look at the industry, marketplace, tax or accounting issues that may impact the deal.
Credenz Advisory works closely with its clients and their advisors to scope out the information required to meet their objectives. Our goal for each merger & acquisition transaction is to provide our clients with the appropriate information to allow them to proceed, renegotiate or restructure, or withdraw from a potential transaction. Our suite of transaction services supports you over the full lifecycle of your deal.
A typical acquisition financial due diligence’s scope would focus on:
• Assessing the quality of assets, earnings and cash flow
• Determining the value drivers and risk areas
• Working capital considerations
• Identifying internal control weaknesses including observations on systems
• Assessing differences from generally accepted accounting principles (GAAP)