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M&A

Due Diligence

UNDERSTAND

U

Conduct Interviews & Review Data

NAVIGATE

N

Deploy Clear Analysis

IMPLEMENT

I

Unlock Risk Mitigation

TRACK

T

Track Progress

YIELD

Iterate & Evolve

Y

Using the UNITY framework, let's explore a specific scenario that may keep you up at night...

Scenario

You are considering acquiring another company and need support regarding due diligence activities to assess the target's financial health, legal compliance, and operational efficiency.

01

Conduct Interviews & Review Data

  • Understand the client's specific objectives and acquisition criteria, including financial performance targets, strategic fit, and risk tolerance.

  • Define the scope of the due diligence assessment, identifying key areas to examine, such as financials, legal documentation, and operational processes.

  • Define the scope of the valuation assessment, specifying the valuation methods and key assumptions to be used.

  • Identify relevant regulatory and compliance requirements that must be adhered to during the due diligence process.

  • Assess potential risks associated with the acquisition, including financial liabilities, valuation process, legal disputes, and operational challenges.

02

Deploy Clear Analysis

  • Develop a detailed due diligence plan outlining the specific procedures, data sources, and evaluation criteria for each focus area.

  • Collect financial statements, legal documents, and operational records from the target company and relevant third parties.

  • Assemble a team of experts, including financial analysts, legal experts, and industry specialists, to conduct the due diligence.

  • Identify and implement technology solutions and tools to support data analysis and document review efficiently.

  • Develop a risk mitigation plan for addressing potential issues identified during due diligence.

  • Choose the appropriate valuation methodologies, such as DCF analysis, CCA, or asset-based approaches, based on the target company's characteristics and industry norms.

  • Develop a robust valuation model, applying chosen methodologies and assumptions.

  • Perform sensitivity analysis to assess the impact of varying assumptions on the valuation results.

03

Unlock Risk Mitigation

  • Conduct a comprehensive financial analysis, including reviewing income statements, balance sheets, cash flow statements, and financial forecasts.

  • Assess operational processes, identifying areas of efficiency, potential bottlenecks, and opportunities for improvement.

  • Analyze the collected data and findings, highlighting key insights and areas of concern.

  • Prepare a detailed due diligence report presenting findings, recommendations, and risk assessments.

  • Based on valuation results, advise the client on negotiation strategies, including setting initial offer prices, assessing potential deal structures, and determining negotiation tactics.

04

Track Progress

  • Communicate key findings and recommendations to the client, addressing any immediate concerns or questions.

  • Collaborate with the client to develop an action plan for addressing identified risks and implementing recommended strategies.

  • If the acquisition proceeds, assist the client in planning for post-acquisition integration based on due diligence findings.

  • Monitor the negotiation process, providing ongoing support and guidance as needed to achieve favorable terms.

05

Iterate & Evolve

  • If the acquisition is completed, conduct a post-acquisition assessment to ensure that the findings and recommendations align with the actual outcome.

  • Continuously refine due diligence processes based on lessons learned and emerging best practices.

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