A merger or business acquisition is a great way to very quickly grow or diversify your business.  But mergers and acquisitions are complicated and high risk so you need professional help to undertake a detailed due diligence exercise find any skeletons that may be in the cupboard and ensure that you know what you are getting yourself and your business in to.

Don’t just trust your gut. A comprehensive Due Diligence exercise by an appropriately skilled CFO will ensure that you know and understand all the risks BEFORE you enter contractual arrangements for a merger or acquisition.

Getting it wrong could be far more serious than burnt fingers. It could cost you your business . . . or more.

WHAT IS DUE DILIGENCE?

A Due Diligence process is a formal and structured way of investigating & analysing in detail, all the factors, issues and risks associated with a proposed business acquisition of merger.

It is essential to under Due Diligence before finalising any business acquisition or merger. To fail to do so can put you and your business at significant risk.

Our Outsourced CFO can undertake a detailed due diligence process for you while you continue to run your business.

The scope of the detailed due diligence (DD) will be dependent upon.

  • Whether it is a pre-acquisition or pre-merger DD
  • The basis of the acquisition e.g., purchase of a company/legal entity or acquisition of a business as a going concern or purchase of assets. Client base, IP etc.
  • The basis of the merger (an almost endless list of options)
  • The strength and enforceability of any vendor undertakings or profit warranties etc

However, typically the following areas would be investigated, analysed and reviewed during the due diligence process.

  • Corporate statutory records
  • Financial Results / profitability / sustainability
  • Revenue streams & sales agreements / customer or client base
  • Product or service costs & operating expenses / capacity
  • Cash flow forecasts
  • Investments
  • Fixed assets and current assets / condition / value etc.
  • Long, short-term and contingent liabilities
  • Accounts receivable / recoverability
  • Tax compliance and status
  • Intellectual Property / ownership / licenses
  • Raw material supply agreements
  • Personnel and employee benefits and liabilities
  • Rights, licences and other regulatory matters
  • Litigation, investigation or other disputes (or potential disputes)
  • Computer and software systems and capabilities
  • Etc.

Most challenges encountered during the due diligence process are not necessarily ‘show stoppers’.  Most can be managed and dealt with – if they are identified early in the acquisition or merger process.

The importance of completing a detailed due diligence PRIOR to finalising and executing the acquisition or merger agreements cannot be overstated. 

WHAT WE OFFER

Because every proposed acquisition or merger is different, we don’t offer a ‘one size fits all’ due diligence solution.

We offer a complimentary, no strings attached, 30-minute Zoom consultation to discuss the proposed acquisition or merger and the possible scope of a due diligence.

TAKE ACTION NOW to discuss how our Due Diligence services will protect you from burning your fingers & wallet

by booking a Complimentary 30-minute Zoom Consultation via the ‘Please Book . . . ‘ button (below). During the ‘no strings attached’ Consultation with one of our Outsourced CFOs, we’ll discuss your business challenges, some possible solutions and explore how we may be able to assist you. 

OUR PROMISE:

During the 30-minute complimentary Zoom consultation, our CFO will provide you with, a Due Diligence Checklist that you and your team can work on to minimise your acquisition or merger risk – whether you choose to work with us or not.

DON’T DELAY. Do it now

Please Book 30 min Complimentary Consultation
Call Us 1300 705 510

You have nothing to lose and everything to gain!

Time is of the essence, because in today’s business environment, if you’re not going forwards, you’re going backwards.