Comprehensive financial analysis, risk assessment, and due diligence for international business transactions
Detailed Review of Financial Statements: Thorough examination of audited and management-prepared income statements, balance sheets, and cash flow statements for historical periods (typically 3-5 years).
Trend Analysis: Identifying and analyzing trends in revenue, expenses, profitability, and key financial ratios over time.
Seasonality and Cyclicality Assessment: Understanding the impact of seasonal or cyclical factors on financial performance.
Sustainability of Earnings: Evaluating the persistence and recurrency of reported earnings by adjusting for non-recurring items, one-time gains/losses, related-party transactions, and changes in accounting policies.
Identification of "Red Flags": Uncovering unusual accounting practices or aggressive revenue/expense recognition policies.
Normalization Adjustments: Quantifying adjustments to EBITDA and other key profit metrics to reflect a more accurate picture of ongoing operational profitability.
Assessment of Net Working Capital: Analyzing historical and current levels of working capital and identifying trends, seasonality, and key drivers.
Quality of Working Capital Components: Evaluating the age and collectability of receivables, the obsolescence risk of inventory, and the terms and ageing of payables.
Identification of Normalised Working Capital: Determining the appropriate level of working capital required to support ongoing operations.
Cash Conversion Cycle Analysis: Assessing the efficiency of the company's working capital management.
Review of Debt Agreements: Examining terms, conditions, covenants, and security associated with existing debt facilities.
Identification of Off-Balance Sheet Liabilities: Uncovering commitments, contingent liabilities, and other debt-like items not readily apparent on the balance sheet.
Assessment of Net Debt: Calculating the net debt position of the target company.
Capital Expenditure (CapEx) Review
Tax Due Diligence
Synergies and Cost Savings Analysis
Review of Financial Projections and Forecasts
Analysis of Accounting Policies and Internal Controls
Transaction-Specific Services
Assisting acquirers in understanding the target's financial position, identifying risks, and validating investment theses.
Assisting sellers in preparing for a sale process by proactively identifying and addressing potential financial issues.
Providing support to the seller throughout the transaction process, responding to buyer queries, and managing data rooms.
Assisting with the review and preparation of closing accounts and net working capital/net debt adjustments.
Assisting with post-merger integration of financial reporting and monitoring the performance of the acquired business.
Comprehensive examination of all financial aspects
Identify and quantify potential financial risks
Provide valuable insights for informed decision-making
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