We perform financial/accounting and analytical business due diligence validating the quality of earnings and evaluating the balance sheet/working capital characteristics. Through our network of subject matter experts, we can also perform the tax and information technology diligence. We tailor our approach and procedures to meet your needs. This ranges from performing preliminary analysis in connection with early stage pre Letter of Intent to post Letter of Intent full scope diligence.
Alternatively, and more commonly given our experience as underwriters, equity investors, operators and service providers, we integrate and operate as an extension of the investing team. We “hold the pen” driving process to ensure there is a comprehensive, properly sequenced, cost-efficient due diligence plan. This includes, for each diligence work-stream, scoping the work, sourcing/qualifying vendors, establishing the sequence/timing for executing each diligence activity and managing vendor activities/costs.
As part of all engagements, we review all key deal documents including Letter of Intent, Purchase and Sale Agreement, Newco Operating Agreement and creditor/lender agreements. We issue our reports and share our thoughts, insights and viewpoints with a focus on financial/accounting terms/definitions, reporting requirements, working capital mechanisms, earn-out calculations and covenant requirements.