Due Diligence

Before entering into an agreement or a financial transaction with another party, consider the essential factors that will guide your decision.

Contact Us
Industries  <  Transaction Advisory Services  <  Our Solutions  <  Due Diligence

Before entering into an agreement or a financial transaction with another party, consider the essential factors that will guide your decision.

Before entering into an agreement or a financial transaction with another party, consider the essential factors that will guide your decision: vetting the investment for financial stability and future growth potential, weighing pros and cons, negotiating the best terms, and identifying discrepancies that may indicate possible drawbacks in the future. You want to be sure you make the right decision for your organization—and at the best value.

blum will shape a complete picture of the overall circumstances and provide guidance on how to use them to your advantage. Our Transaction Advisory Services group will help you reduce risk by collecting and analyzing the material facts of your prospective transaction. We work with you to identify areas of focus, and the procedures we perform are designed to address your specific needs, so you can confidently determine whether the transaction you’re considering is right for you.

Buy-Side Due Diligence Services

Our team is here to help you ensure this deal is right for you.  As the buyer your goal is to make a smart acquisition, at the right price.  Our due diligence process focuses on validating the key financial, operational and strategic aspects of every transaction, so that your focus can be on structuring and negotiating a favorable transaction.

Our diligence procedures include a plan to:

  • Validate financial results and assumptions
  • Validate EBITDA and management add-backs
  • Evaluate working capital levels and recent trends
  • Develop an understanding of internal control systems, processes and personnel
  • Identify potential control weaknesses and deficiencies
  • Analyze the quality and accuracy of assets being acquired or liabilities being assumed
  • Assist with financial projections and analysis
  • Our teams are able to adapt and modify our approach to meet the needs of each specific transaction

Sell-Side Due Diligence

Our teams have tremendous experience on the buy-side to anticipate buyer requests, needs and potential issues in the transaction.  This puts us in a unique position to assist you with preparation and assessment before you have a buyer at the table.  Going to market to sell your business is a difficult, time-consuming process, and any buyer will require diligence before paying top dollar for your business.  Making the investment in a pre-sale due diligence with our group will create several benefits for you:

Financial Accounting Due Diligence

An unclear understanding of the business being purchased may result in overpayment and post-transaction disputes as well as unanticipated challenges integrating a newly acquired operation and failure to realize anticipated value. Our due diligence services address elements such as:

  • Analyzing quality of earnings and quality of assets of the prospective investment
  • Performing financial projections
  • Assessment of cash flow or working capital needs
  • Identifying hidden costs
  • Identifying filing and compliance requirements for federal, state and local taxes
  • Mitigating risks associated with the transaction
  • Assessing technical environment and capabilities

Tax Due Diligence 

Analysis of the target company’s tax profile is a critical component of any deal. This work can entail an analysis of federal, state, local and foreign (if applicable) income tax returns. We can also bring the right expertise to analyze sales and use taxes, property taxes and employment taxes, often overlooked aspects of the tax picture. Through this process, we are able to identify areas of potential tax exposures as well as potential tax opportunities.

Information Technology Due Diligence

Information technology is a risk area often overlooked in middle market transactions. We will gain an understanding of the target company’s critical hardware, software and infrastructure, review and assess network security and backup as well as business continuity plans and procedures. Our IT professionals can also play an important role in developing post-close integration plans.

Operational Due Diligence 

We conduct operational due diligence procedures so you have the information necessary to make an informed decision about the target company. We can observe and document operating procedures and identify control risks. We can conduct a detailed analysis to identify revenue growth, customer defection rates, volume and
pricing trends.

 

Continue the Conversation with Our Team
Get in touch with us.

Contact Us