Financial due diligence

Buyers in a transaction frequently rely on independent accounting due diligence to review the target’s historical and forecasted information and test the sellers assertions that are critical to the target business valuation. Sellers want to ensure that the financial information provided to potential buyers supports the asking price and has no potential surprises that could cause buyers to challenge the credibility of the seller and weaken their negotiating position. HSS can help both buyers and sellers through the following financial due diligence services.

Buy side financial due diligence

• Evaluating quality of earnings, cash flows, revenue and margin drivers
• Forecast analysis
• Quality of assets
• Working capital analysis
• Capital expenditure requirements, contingencies & commitments
• Identifying cost savings opportunities, potential synergies and forecast analysis

Sell side financial due diligence

• Assisting vendors in determining business values
• Sale strategy
• Early identification and management of potential transaction issues
• Preparation of confidential information memorandums
• Identification of potential buyers
• Negotiations with potential buyers

Related Pages: Transaction Advisory Services, Merger & Acquisition Planning, Financial Due Diligence, Transaction Tax, Corporate Finance