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Mergers and Acquisitions

Whether you are on the buying or selling side of a merger or acquisition, you need the financial due diligence that our team of experienced CPAs provides. According to a recent Harvard Business Review report, between 70-90% of M&A transactions fail, often due to (a) an incorrect valuation or (b) inadequate integration. 

Accountants have the knowledge and expertise to identify and address the following:

  • Does the reported cash flow equal the actual cash flow?

  • Are there any contingent liabilities?

  • What tax issues may be present?

  • Where are the opportunities for synergy between the companies?

How we can help buyers: Buyers need to have a clear understanding of the financial state of the target company:  where they’ve been and where they’re trending. We evaluate the situation by looking at the historical and current financial performance of the company, identify areas of opportunity and risk, and forecast future growth. We provide these services and more, including:

  • Perform the necessary financial and tax diligence

  • Structure the deal for tax efficiency

  • Identify unrecorded assets

  • Identify unrecorded liabilities

  • Evaluate working capital and cash flow

How we can help sellers: We provide leadership teams considering divestiture with a comprehensive review of the company’s financial position to help identify and remove any roadblocks to acquisition and create the foundation for a smooth transaction. During this process our CPAs will:

  • Evaluate all financial statements including balance sheets, income statements, cash flow statements, and statements of shareholders’ equity

  • Analyze the earnings and net assets and calculate accurate EBITDA/cash flow margins resulting in creditable company valuation

  • Review all tax records: federal, state, and local

  • Respond to buyer questions

Accountants are an integral part of your M&A team. When you work with us, you have access to the knowledge and experience of a team of CPAs who have years of experience working with small and mid-sized enterprises. Whether you are the buyer or the seller, the proper financial due diligence will keep the M&A transaction moving forward swiftly while gaining the maximum return on your investment.

Contact us today to learn more about what we can do for you. 

 

Don't minimize the impact M&A will have on your workforce - your most valuable asset.  Click here to learn more about pre M&A due diligence through a human capital lens, plus post M&A integration services, provided by our sister company, De Novo HRConsulting.