When the investment is for a business acquisition, be it a buy-out, a takeover or any other transaction, this investigation is generally referred to as Due Diligence.
As part of the process, we conduct a thorough appraisal of:
The current financial condition of the target,
The robustness of its forecasts
Application of accounting policies
Reliability of assumptions on which the forecasts are based
Impact of acquirer’s accounting policies
Impact of the investment funding costs and cash-flows
Where we distinguish ourselves is in the level of business insight and in the clarity of our reports – we aim to add value to the investment process, not merely be an insurance policy for the investor.
It is not our place to tell you whether to make an investment or not but we can help you by critically assessing, in a clear and unambiguous report, the information which you use to decide whether, or on what terms, to make that investment.
In a pre-lending review the circumstances are slightly different and the information available generally less comprehensive, however the processes and the reporting are very similar. We conduct an appraisal of the business proposition, the resultant cash-flows, and sensitivities to those cash-flows.
We also identify the threats and opportunities, risks and rewards in a comprehensive report to be used as part of the lending appraisal process.
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