Buying a business | further information

 

At the stage of contemplating financial due diligence, you probably have a developed, commercial understanding of the business you wish to buy, with a price tag in mind.  Perhaps some 'Heads of Terms' or 'Offer Letter' are in circulation.  You probably have a perspective on acceptable financial risks and a list of concern areas for follow up.

Depending on your access to the financial and commercial details about the 'target' business, questions may remain to be answered, to provide sufficient comfort to proceed.  Like buying a house, this is where the diligent structural 'financial' survey comes into play...

Developing confidence in the financials is crucial.  A tailored piece of diligence work would look to understand and advise on the inherent risks and upsides in a balanced manner, with practical recommendations.  Typical 'buy-side' considerations include:

  • Do I trust the financial data?
  • What is driving historical performance?
  • What is the underlying trading performance?
  • Robust forecast?
  • Debt levels acquired?
  • Working capital and cash requirements?

Finmatix can support and advise you on all of the above potential issues and more; helping you pay the right price for your acquisitions and providing practical guidance on emerging financial matters to manage post deal.

Finmatix recognises there are usually several key parties to a deal; Board members, lawyers, funders, stakeholders and more.  With a track record of concise and impactful reporting, findings can be formally documented and shared well ahead of time, to help facilitate communication of issues and allow broad consideration for those principals' involved.