Private Equity

Invest confidently through buy-side due diligence

Adding to your private equity portfolio? Unmask the right deal.

Insights you can use

Ten questions to ask before buying business
A diligent approach to value creation
Successfully navigating M&A due diligence in a competitive deal process
Issues in negotiating cash-free debt-free deals
Credits and incentives can add real value to your deal
Post-merger integration: Failing to plan is planning to fail
Post-merger integration: Not too late to optimize transaction value
Post-closing disputes: Key issues and how to avoid them

Making the right acquisition at the right price is critical in today’s complex and competitive deal-making environment. If hasty decisions are made to buy without completing overall business, technology, financial and operations assessments, the transaction may be delayed or systemic problems may not be uncovered until post transaction, causing business disruptions, stresses on your existing portfolio businesses and financial losses. Or, worse yet, the targeted business may not be valued appropriately due to undisclosed issues pre-sale. Finding that out after the deal has been executed could not only be challenging, but harmful to your overall future business.

To minimize transaction risk, employ a fully integrated buy-side due diligence process that includes financial, tax and operational due diligence. This integrated approach can help you understand your risks and opportunities so you can make an informed decision about how and whether to proceed with the deal while protecting your interests.

Specifically, the process unmasks and assesses the following areas about the targeted business:

Earnings and cash flow quality
Assets and liabilities quality
Internal control weaknesses related to systems and personnel
Deal structure from a tax perspective
Federal, state and local tax compliance risks and issues
IT infrastructure and system issues and future cost savings and requirements
Financial projections
Purchase agreement details and alignment
Risks and costs associated with complex transactions like carve-outs and add-on acquisitions

Understanding the above allows you to weigh transaction price and terms as well as the future of the targeted business. Other advantages of an integrated buy-side due diligence strategy include:

Gained insights about risks and opportunities to address pre- and post-transaction
Efficient transaction speed, and in some cases, accelerated transaction close
Maximized organizational and operational efficiencies in add-on integration
Minimized transitional service agreement cost burdens for carve outs
Reassurance of day-one readiness with seamless resources support
Efficient management adaption to private equity ownership

Buy-side due diligence allows you to analyze and validate critical financial, operational and strategic aspects of the deal, making it easier for you to structure and negotiate a favorable transaction that’s right for your overall portfolio.