Financial Due Diligence and Quality of Earnings
When there is a complex transaction, you need a team that understands the business, the transactional risks, and the urgency of due diligence work.
Whether you are a private equity group seeking transaction support or a business looking for mergers and acquisition advice, our seasoned professionals provide a unique blend of analytic, investigative and financial assessment skills, and are experienced in multiple industries and disciplines to help mitigate your transaction risk.
With diverse industry and financial professional backgrounds, Aldrich has a team dedicated to support transactions with a process that integrates services such as financial analysis, domestic and international taxation, operations, human resources, and employee benefit consultation. While we are skilled at risk mitigation, our industry niche approach provides us with the skills to identify key business drivers, operational improvements, cost savings, synergistic opportunities, comprehensive quality of earnings analysis, capital optimization and better asset utilization.
Mergers and acquisitions financial due diligence
Our financial due diligence process will help you examine risks and issues before making an investment decision. In any merger or acquisition, financial due diligence is important for negotiation purposes as well as to identify future growth opportunities and post-acquisition strategies.
Each engagement is unique and our process is customized to your specific situation and may include:
- A comprehensive quality of earnings analysis to identify aggressive accounting policies, assessing the utilization of critical management estimates, and ensuring compliance with general accepted accounting principles
- Evaluating the business model with a focus on ensuring the integrity of financial forecasting, including operations, financing and capital expenditure investing
- Assessing the transaction structure, including analyzing the adequacy of capital, tax efficiency and downstream investment requirements
- Assessing working capital requirements to support the proposed transaction and future growth plans of the business
Sell-side due diligence
Our sell-side due diligence services include significant experience with the sale of all or a part of a company, as well as assistance with divestitures, carve-outs and spin-offs. Our involvement will be customized, but may include:
- Comprehensive quality of earnings analysis and financial statements with a focus on maximizing the value of the company and to uncover potential buyer issues
- Analyzing operating results in order to receive higher quality offers and to accelerate transaction close
- Determining the most efficient tax structure for the transaction and assessing the impact on potential buyers
- Organizing and presenting financial information to present the company favorably and to help the buyers
- Identifying human resources and information technology issues and their potential impact on the company’s value
- Financial planning for sellers, with a focus on the implications of the sale of a company on the goals of the
seller post closing of the transaction