Transaction Support & Due Diligence
Due Diligence
The due diligence process provides a detailed review of a target business from a financial and commercial perspective, adding value by focusing on the key issues likely to affect the decision to proceed with the acquisition and those factors which affect the price.
RSM Bird Cameron have developed a tailored due diligence methodology that enables us to provide a value added service by focusing on the key issues relating to your transaction, the target business and the impact of the acquisition on your business. Our methodology ensures that we:
- Identify the key issues. These key points will assist you in the decision as to whether to continue with the acquisition through the identification of deal breakers. The identification of these issues is also critical in enabling you to negotiate the final consideration to be paid for the business;
- Evaluate the purchase price through a detailed review and appraisal of financial projections and the assumptions underpinning the projections;
- Review the implications of the proposed transaction structure and advise on alternative structures which may be more attractive from your perspective as a potential purchaser; and
- Advise on the financial, taxation and commercial aspects of the purchase agreement. Such agreements often contain financial mechanisms and clauses which can impact upon the purchase price. We work closely with your legal advisers to ensure that the purchase agreement includes the necessary protection that you require when buying a business.
The scope of our due diligence work is discussed in detail and agreed with you to ensure that our work is focussed on the identification and quantification of key issues that may impact on the target business, its marketplace and your consolidated business post acquisition.
IPOs
When contemplating a potential listing or capital raising, management often underestimate the considerable time cost involved and the distraction this can cause to their normal business activities. For example significant time is spent in the careful drafting and verification of a prospectus and the various disclosures and financial information contained within the document. Our approach is to work closely with senior management and, where appropriate, take the lead in discussions with your brokers, lawyers and or other advisors.
Having successfully completed this task for many clients previously we are able to draw on our vast experience in the completion of Independent Accountant Reports relating to the review of future forecasts, pro forma balance sheets, appropriateness of accounting policies and other accounting related transactions.