We provide due diligence services for acquisitions, disposals and public and private offerings. Our services checks that the target company (accounts, organisation and activities) is all that it claims to be and ensures that the purchaser does not acquire unknown liabilities.
Our team undertakes a structured and thorough approach to due diligence projects which include:
Strategy – Understand the strategic aims of the transaction and the critical success factors for the acquirer or investor.
Planning – Agree the time scales and resources required, the scope of the overall project and key areas of risk on which to focus.
Execution – Undertake the various analyses. Some will be completed in the field and others using external and internal office based resources. Depending on the nature of the business, the work may involve site visits and property inspections, the valuation of intangible assets such as intellectual property rights, physical stock takes and discussions with key customers and suppliers to ensure the contractual arrangements are sound. The points at which key issues are reported are flexible so that costs can be kept to a minimum if it appears that the transaction will abort.
Reporting – For public transactions there will be a need for formal long and short form documents for potential investors that confirm the necessary due diligence has taken place. In private transactions (such as trade sales) there may be a requirement for specific reports.
Negotiation – The results of the due diligence may indicate that additional warranties, indemnities and guarantees may be required and/or that purchase criteria and considerations may need to be reviewed.
Completion – We work alongside the deal team to provide the records and analyses required for the successful completion of the transaction.
Whilst we do work on due diligence projects on a standalone basis, often we will be involved in the wider aspects of the transaction and are often retained to provide continued support and advice to companies.