Without doubt, the success of an acquisition to an acquirer, be it a corporate or financial investor, can be significantly influenced by the extent and quality of the due diligence undertaken. Financial due diligence is a key aspect of the overall investigation into the target.
- The best way to minimise the risk associated with a business investment is to be in a position to make a well informed decision regarding the merits and risks associated with your acquisition target.
- Due diligence provides you with a detailed insight into your acquisition target. The process involves conducting an investigation into the commercial, financial and taxation affairs of the target.
The specifics of the deal always determine the scope of financial due diligence. However, the process typically includes:
- an in-depth analysis of underlying historic performance, cash flows, assets and liabilities;
- a critique of management's forecasts, including the working capital requirements of the business;
- a review of the underlying financial systems and controls; and
- analysis of the taxation position of the business.
Powers Corporate Finance believes that adding value through a due diligence review starts with understanding the reasons why you are seeking to make the acquisition or investment, and continues through to the careful design of the due diligence procedures and the presentation of the findings in a detailed written report.
We have a reputation for thoroughness, so you can transact with more confidence, knowing that any issues have been properly reviewed and thought through. Also, we aim to identify key issues at the earliest stage so you can reach a ‘go/no-go’ decision earlier.