Once you have identified a target for potential investment you will require a better understanding of the financial position and performance of that business, as well as a more detailed analysis of its prospects for the future.
You will undoubtedly want to know whether the opportunities that you believe are offered by this particular investment stand up to scrutiny and you will want confirmation as to the extent of any possible hidden liabilities and risks that are not directly identifiable on the balance sheet.
First, we will sit down with you in order to fully understand the context in which the due diligence is to be carried out. The strategic thinking, the main commercial considerations and the structure of the transaction itself will all play an important role in determining how we work with you. We will also liaise with your internal team to determine the specific scope of work that you require our assistance with (and, by extension, confirm the areas that they will be dealing with directly). That way we will ensure that all key areas are considered and that this is done in the most cost-effective manner.
These initial discussions, as well as an understanding of the timeframe and budget involved, will ensure that the process is as focussed and efficient as possible.
The results of due diligence can often assist in negotiations surrounding purchase price and will inevitably lead to assisting your legal team in constructing a more robust sale-purchase agreement.
It will also help in respect of identifying areas of the business that would require closer management post-completion, allowing you to start an early consideration of the systems and controls that may need to be put in place.
Financial due diligence is one aspect of the overall investigation that a purchaser might carry out - other areas include those relating to legal, commercial and environmental matters.
Our wider network includes lawyers and solicitors who also specialise in the field and who we trust we can work with in order to provide the necessary information that you would require before completing the transaction.
Our experience in this area also means that we are well placed to assist a vendor with their dealings with a would-be purchaser’s own team, enabling you to spend your time working on the areas of the sale that most require your input.