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Due Diligence
Before making a business purchase or investment, it's crucial to have a clear understanding of what you're getting for your investment.
Both you and your funders will want to know the expected returns in the short term and over the next few years (e.g. 3-5 years). Additionally, it's important to uncover any hidden issues or risks associated with the business.
Paying an inflated price or dealing with uncertainties can be undesirable in a transaction. Our role is to ensure that you pay a fair price based on the business's actual value and that any unknown factors are revealed through thorough due diligence.
While there may be instances where access to complete financial and trading records is limited by the seller, such situations are rare in SME market acquisitions and disposals.
We will provide you with guidance and advice on the following matters:
- Support you through the whole transaction process, from evaluating the business 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 an upper and lower limit on the 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 be made during the deal and post-deal.
For more information, contact our Corporate Finance team.