The success of an M&A deal starts with comprehensive due diligence, it is the only way to understand if the deal is the right decision at the right price. In a complex business environment, we can support you in the analysis and assessment of available information, in order for you to make an informed decision and create the best value from a transaction.
The pace of today’s M&A activity demands decision-makers make the right moves confidently and swiftly to avoid missing opportunities. This requires clarity and an in-depth understanding of the deal, both of which can be difficult to achieve as the deal-making environment becomes more complex.
We offer an insight into the target company’s current financial position, projected financial statements, competitive positioning, product mix, operations, customer and vendors relationships, and market outlook.
Our due diligence offering is designed to keep you in control and aware of issues as and when they arise, as well as providing expertise and informed advice in order to support you in developing your deal strategy.
Whether you are a buyer or a seller, our specialists can assist and advise you to help you create the best value from a proposed transaction.
For sellers, we help you understand the potential risks and rewards of a divestiture. We assess your situation and support your negating position to maximize the sales price and execute the deal with the minimal disruption to the remaining business operations.
For buyers, Financial Due Diligence helps identify and focus attention on the factors in the business that will be critical to its future success, and ensure that the financial information of the target business reflects the reality. With a comprehensive analysis of historical actual earnings (identification of one-off events and sustainable earnings), Financial projections, Cash Flow generators, Capital expenditure, Working Capital, Management Information Systems and internal control environment, Employment issues and Commitments and contingent liabilities, we help buyers to:
- Improve their understanding of the target business and therefore increase the likelihood of the deal achieving its objectives
- Identify and understand critical success factors and therefore improve understanding of all the relevant issues so that informed decisions can be made
- Highlight strengths that can be built upon or weaknesses that can be resolved
- Understand the impact of synergies and create value
- Focus on quality of earnings, assets and liabilities
- Take an informed decision based on expert financial analysis and conclude the transaction
Haynes Path also provides Commercial Due Diligence (CDD) services that involve a comprehensive review of the company’s business plan in the context of projected market conditions and the industry/competition. This analysis focuses on key issues crucial to the buyer, relating to the review and assessment of assumptions made in forecasts/projections of the target against market evidence and industry expectations in the sector. CDD involves a review of following key areas:
- Competitive landscape and market share
- Economy and industry outlook
- Expansion and growth strategies
- Sales and Marketing strategy
- Pricing and margins, including projection sensitivities
- Customer profiles and concentration of risk