Acquisitions & Due diligence

Grow your business, but minimise risks

For over 20 years we have helped our clients make successful business acquisitions, taking into account valuations, business objectives, tax planning and exit routes, usually after performing due diligence.

The appetite for DD can depend on circumstances. Some buyers will want to have an extensive analysis completed and others won’t. It can vary and is often linked to the cost of the purchase. If you’re buying a business for £2m then to spend £20k on some DD makes sense. But if it’s a £100k purchase you probably want to spend much less than that.

if you’re looking to invest in another business there are some minimum things that you will want to think about for the average sale. Things like leases, employment contracts, and overall terms & and conditions with key customers. It’s also a good plan to check for any disputes or pending litigation.

That’s why we have due diligence programs that are tailored to meet your needs and make sure that nothing is overlooked.

Benefits

A sensible business owner will know that he/she can address many issues, but will also know the value in having someone objective to discuss mattes with, someone who can look at the deal rationally rather than emotionally. And who can make sure an acquisition fits the strategic plan.

Quality assurance

Assurance can be provided through our experience, the use of a due diligence work programme and a company valuation model that checks you’re in the right ball park and through use of our specialist corporate finance colleagues in our UK200 network.

What we can do?

For some clients, we’ll be there every step of the way, from meeting vendors, carrying out risk analyses as part of a due diligence process, negotiating a deal, though to checking out heads of terms. And then there’s possible tax consequence.

How much is it?

Fees will vary according to level of involvement and complexity of the deal, but can be agreed in advance.

FAQs

Why should we use you rather than a corporate finance specialist? A simple deal may not warrant the cost of a corporate finance specialist, but we would recognise when a specialist is needed and introduce you to our network colleagues. 

When does a solicitor get involved? We’d always advise clients to have legal documents checked by a solicitor. 

If I do a deal, how can you help make it successful? There are number of things we would do, such as: carry out a risk analysis (FMEA) and create actions to minimise the risk identified, prepare a strategic SWOT analysis and make sure you have a clear business plan for your new acquisition, which we  can help you implement.