Our Services
Due Diligence: Protecting Your Investment Before the Deal Closes
When you acquire a company, you inherit more than just customers and revenue; you also assume its existing contracts, debts, and employee obligations. If you don't look before you leap, you won't know where you land. We uncover crucial insights before the merger, ensuring a successful union and protecting your capital.
- Quality of Earnings: A high revenue or growth rate can mask poor quality earnings from unsustainable practices like channel stuffing or abuse of rebates. We verify performance for true, sustainable value.
- Unfavorable Contract Terms: Binding contracts can contain prices or terms that lead to heavy losses post-acquisition. We help you identify these and factor expected losses into the sales price, or push for pre-takeover renegotiation.
- Receivables Integrity: As accounts receivable heavily influence valuation, we rigorously discount for difficult-to-collect or non-existent debts, ensuring a fair and accurate company valuation.
- Undisclosed Liabilities: We review records post-takeover date to identify hidden liabilities such as outstanding amounts owing to suppliers or unsatisfied charges that may indicate undisclosed loans.
- Headcount and Retention Risk: Employment contracts are binding. We assess overcapacity risks (which can lead to heavy compensation payouts) and gauge the retention risk of key management personnel post-takeover.