Whether you are acquiring a corporate entity or the trade and assets of a business, commercial and tax due diligence forms an important part of the process. It reduces the risk of post transaction surprises, allows you to plan the integration strategy and provides you with an independent review of the proposal.
In all cases financial due diligence should be carefully tailored to your specific requirements having regard to the nature and size of the target, your existing knowledge and the relative size of the transaction. As a minimum, however, the financial due diligence process should:
- Quickly identify any potential deal breakers;
- Give you comfort that the historic and prospective financial information on which you are basing your investment decision is reliable;
- Conclude on the historical sustainable earnings;
- Identify how profits convert to cash;
- Identify matters for which specific protections should be sought in the form of warranties or indemnities;
- Review the immediate and future tax implications of the transaction and recommend appropriate structuring.
The Vantis Transaction Support Team is made up of experienced dedicated professionals who are able to add significant value to the acquisition process. We provide our clients with constructive advice, not only highlighting problems but also providing innovative solutions.