Due Diligence for Mergers and Acquisitions
It is essential for buyers and sellers of closely held stock to enter the transaction with a full understanding of the financial strengths and weaknesses of the business. Buyers should have a clear understanding of the likely future profitability of the business. Sellers should understand their business well enough to effectively communicate its potential and create a comprehensive package for prospective buyers.
The Buyer’s Perspective
Sack Associates will verify that the financial information is both accurate and relevant. Relevant information is both accurate and creates a complete and true representation of the business’ performance that provides a reliable basis for forecasting future likely profitability. For example, past sales from a large customer that has since filed for bankruptcy are not relevant to a buyer.
Sellers may "prepare" a business for sale in order to obtain a higher price by making it look better than it actually is. It's understandable, we all like to look good and get the most we can, but that could cost you, the buyer, money. A professional due diligence review will provide you with a realistic and complete financial picture of the business.
Sack Associates provides you with an in-depth understanding of the business before you sign on the dotted line. It makes a lot more sense to learn key issues about the business in due diligence rather than after you have already purchased the business and the price or deal structure or decision to make the purchase cannot be changed. Armed with this knowledge before you take over will also provide the necessary footing to be most effective from day one.
Sack Associates has advised and performed due diligence assignments for over one hundred buyers of businesses in a wide range of industries.
We will be happy to provide sample due diligence reports and references upon request.
The Seller’s Perspective
Sack Associates prepares Confidential Business Reviews for sellers who want to clearly communicate the business opportunity to prospective buyers.
Our reports include sections describing:
- Business Background
- Products or Services
- Markets and Customers
- Sales and Marketing
- Key Personnel
- Facilities
- Equipment
- Litigation/Contingencies
- Financial Analysis
- Expected Price (sometimes a range)
Sack Associates has assisted sellers with business sales to both private and public buyers. We can help you maximize your exit price.
We will be happy to provide sample business review reports and references upon request.