Providing Due Diligence Advisory To Get Deals Done
Growthink Capital’s due diligence consultants have the knowledge and experience to assist you through M&A and business sale processes.
We leverage our project management, strategy, and investment banking experience to accurately assess the probability of a proposed merger or acquisition.
As part of our due diligence advisory process, we conduct both mutual reviews between two companies in preparation for a business sale or merger and/or independent evaluation of an acquisition target.
Components of a Successful Due Diligence Process
Our experienced team will work with you to develop, complete, and organize a detailed due diligence checklist to enable and ensure an on-time, full-price closing for your next transaction. Successful due diligence includes:
- Confidentiality Agreement: All prospective parties to a transaction sign confidentiality agreements that prohibit them from disclosing information about the involved companies, their intellectual property, trade, and business secrets, along with the proposed transaction.
- Financial Review: Review and analyze financial statements, including income statements, balance sheets, and cash flow statements, along with business analytics as they relate to customer behavior, patterns, and trends.
- Market Research: Analyze the target company’s competitive landscape and market dynamics to deliver insights around likely future state industry scenarios and how to unlock long-term value post-acquisition.
- Risk Analysis: Assess relevant areas of deal concern and risk, including legal arrangements, organizational and corporate structure, IT systems, current competitive and market dynamics, and the positioning of the business.
- Operational Analysis: Review core systems, processes and technologies used to run the business. In addition, we will analyze relevant assets, customer contracts, operating expenses, and other collateral to validate and quantify core areas of value.
- Interviews and Site Visits: As appropriate, our due diligence advisors interview key stakeholders, including management, employees, customers, and suppliers, along with visiting target companies’ facilities and locations.
- Valuation Analysis: Building on the above, we arrive at a “spectrum” of business valuations, acquirers, and targets on standalone bases and as combined entities, in best, worst, and expected case scenarios.
- Data Room Creation and Review: We assist in assembling electronic data rooms that contain relevant information about the involved companies and the proposed transaction(s), including financial, strategic, operational, marketing, and competitive information and intelligence regarding the businesses and their industries. We then review and analyze this data both to identify and quantify the key value drivers, along with the incomplete/missing materials and data needed to be collected to maximize deal value and the likelihood of a transaction closing.
- Reports and Recommendations: Building on the work above and depending on the state and progression of the transaction, our due diligence team will offer recommendations as to the key deal risk factors, how to mitigate them, along with an opinion as to the potential fairness of the proposed transaction.
Why Growthink Capital
Growthink Capital has the knowledge and experience to provide best-in-class due diligence consulting services. We have a proven track record of helping businesses navigate the complex deal due diligence process and successfully close on business sales and M&A. Our process not only increases the probability of a successful closing but also its likelihood of consummating at a price and on terms most beneficial to our clients.