Due diligence

Before you buy or invest in a business you will want to know exactly what you are getting for your money.

You’ll want to know, as will your funders, what returns will be generated initially, and over the next period e.g. 3-5 years. And19796 MACO FINANCIAL ACUITY NEWSLETTER WEB FILES 09 if there are any skeletons in the cupboards, you’ll want to know exactly which room they are in.

No one wants to pay over the odds and no one wants to have the uncertainty that can stem from the unknowns involved in a transaction.

It’s our role to ensure that you only pay what the business is worth and that all the unknowns become knowns, or as near to knowns as the due diligence process reveals.

In certain circumstances the seller may not grant full access to their books and trading records, but in our experience these situations are rare in acquisitions and disposals in the SME market.

We will provide you guidance and advice on the following:

  • Support you through the whole transaction process, from evaluating the business through to negotiations, securing funding and completing the deal.
  • Conduct thorough market, financial and tax due diligence on the target business – past performance & projections, financial statements and reports, property/land/other asset valuations, tax position, market situation and outlook, including key customer contracts and key personnel review.
  • Help you to set the sale price, including your negotiation factors that can be used to smooth the deal and make it happen.
  • Help you to set a upper and lower limit on a price you will pay to purchase the business, or part of the business.
  • Advise you on the financial, legal and tax documentation, agreements and filings that will have to made during the deal and post deal.