Buy-side Due Diligence

Buying a business is never easy, but we remove the uncertainty for you by digging deeper and distilling down volumes of financial data to provide you more relevant information about cash flows, working capital and operating results of target companies. We challenge the financial information and “story” provided by target company management, giving negotiating leverage to you about issues even target company management is not aware of or doesn’t understand. Our unparalleled level of partner involvement ensures the most comprehensive and relevant advice is delivered to you on every deal.  

Using a highly analytical and thorough approach to due diligence, we uncover the realities of a business and make it easier for you to do the right deals, avoid making bad purchase decisions, and preserve value post-close. Our buy-side due diligence approach includes the following:

  • Assess the quality of earnings and quality of assets
  • Perform “carve-out” due diligence
  • Evaluate projections relative to historical performance and plan
  • Analyze key business drivers, profitability trends, and concentrations of risk
  • Evaluate cost structure (including fixed versus variable cost analysis)
  • Assess on and off balance sheet assets and liabilities
  • Analyze net working capital
  • Analyze cash flows
  • Evaluate accounting policies and consistent application of Generally Accepted Accounting Principles (GAAP)
  • Advise on the purchase and sale agreement, including working capital mechanisms and representations and warranties related to accounting topics and earn-out structuring
  • Assess post-close adjustments and other purchase price mechanisms
  • Conduct financial management team assessments
  • Perform tax due diligence and structuring

Buy-side Due Diligence

Buying a business is never easy, but we remove the uncertainty for you by digging deeper and distilling down volumes of financial data to provide you more relevant information about cash flows, working capital and operating results of target companies. We challenge the financial information and “story” provided by target company management, giving negotiating leverage to you about issues even target company management is not aware of or doesn’t understand. Our unparalleled level of partner involvement ensures the most comprehensive and relevant advice is delivered to you on every deal.  

Using a highly analytical and thorough approach to due diligence, we uncover the realities of a business and make it easier for you to do the right deals, avoid making bad purchase decisions, and preserve value post-close. Our buy-side due diligence approach includes the following:

  • Assess the quality of earnings and quality of assets
  • Perform “carve-out” due diligence
  • Evaluate projections relative to historical performance and plan
  • Analyze key business drivers, profitability trends, and concentrations of risk
  • Evaluate cost structure (including fixed versus variable cost analysis)
  • Assess on and off balance sheet assets and liabilities
  • Analyze net working capital
  • Analyze cash flows
  • Evaluate accounting policies and consistent application of Generally Accepted Accounting Principles (GAAP)
  • Advise on the purchase and sale agreement, including working capital mechanisms and representations and warranties related to accounting topics and earn-out structuring
  • Assess post-close adjustments and other purchase price mechanisms
  • Conduct financial management team assessments
  • Perform tax due diligence and structuring