Australia

Investing in a business, either by acquisition or by becoming one of several shareholders, is an important financial decision. An investment offers potential returns, but also inherent risks associated with the returns. It is important to make a well informed investment decision with consideration for both the potential returns and inherent risks of your acquisition target.

William Buck’s pre-acquisition due diligence review begins with understanding the rationale for the acquisition and/or investment, working with you to carefully design the due diligence process taking into account any areas of particular concern, critical analyses of financial and non-financial data and presentation of the findings in a detailed written report which focuses on the important issues. William Buck’s due diligence methodology provides a report which is comprehensive and easy to read, with any identified risks clearly highlighted as well as suggested solutions.

We provide parties wishing to sell their business with Vendor Due Diligence to provide potential bidders with a detailed financial review of the business and allow for a more streamlined and faster sale process. See our process below:

Our financial due diligence process explained:

Understanding the target business

  1. Review of the historical business performance and current business and strategic plans
  2. Meetings with management / site inspections
  3. Understand key business drivers and industry landscape
  4. Understand the intentions of business and seller and terms of proposed transaction

Quality of earnings assessment

  1. Verification of profit and loss items and accounting policies
  2. Understanding material profit and loss movements
  3. Assessment of historical normalised earnings
  4. Assessment of forward looking earnings
  5. Analysis of the quality of the revenue base (customer / product concentration, recurring vs one-off revenue etc.)

Balance sheet and working capital analysis

  1. Verification of balance sheet items and accounting policies
  2. Assessment of net debt
  3. Assessment of current and future working capital requirements

Risk assessment and mitigation

  1. Highlight key financial and commercial risks associated with the target
  2. Propose strategies to mitigate identified risks
  3. Assist with negotiation of sale and purchase agreement if bid proceeds

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