Due Diligence
Due Diligence
Robert Busch
CPA
Principal
William A. Chapman
CPA, CFA
Principal
Pauline Dumas
Director
Ken Fleming
Principal
David Gette
CPA
Principal
Frank J. Walker
CPA, CFF, CVA
Principal
Baker Tilly’s due diligence specialists assess the financial and operational performance of an entity in order to validate the buyer’s or creditor’s investment thesis for a particular transaction. We identify transaction risks through analyzing financial performance, synergy opportunities and making determinations about the quality of reported earnings.
The complex and ever-changing landscape for many industries continues to produce significant financial and operational challenges for transactions to take place.
Properly assessing the value of potential acquisitions and investments through due diligence can be imperative to the success of a transaction. Quality of earnings concerns, operations, market trends, culture issues and other areas all require a closer look to assess risks and determine a company’s true value.
Our due diligence specialists have significant experience working with clients to maximize value in a transaction through ensuring a smooth due diligence process. Whether it is for an acquisition, sale or refinancing, we tailor our due diligence services to meet your specific needs.
The purpose of due diligence is to validate the buyer’s or creditor’s investment thesis by verifying the assumptions made when the transaction was negotiated, seeking out issues and opportunities our clients were not aware of, and providing them with data and insight to help formulate a post-transaction plan.
Our team addresses topics critical to the value of a company and its ability to service debt, including:
- Quality of earnings
- Quality of assets
- Debt and contingent liability
- Related-party transactions
- Commercial due diligence
- Tax due diligence
- IT due diligence
- HR due diligence
- Voice of Customer (VoC)
Vendor Due Diligence
Vendor (sell-side) due diligence addresses all of the same issues as a buyer’s due diligence. However, as vendor due diligence is completed in advance of the sale process, it benefits management by helping them prepare for buyers’/creditors’ inquiries, prepare documents and data for financial, tax and legal diligence, as well as identifying potential negotiation issues.
Why perform vendor due diligence?
Being aware of how a third party will view their business, sellers can cure issues or present mitigating circumstances, minimizing the opportunity for buyers to “re-trade” the transaction and protecting the negotiated price and structure. A well-prepared organization and readily available documentation will reflect favorably on management. An unprepared management team and delays in providing data will not present the organization in a favorable light, increasing the perception of risk in the transaction. Additionally, the sale process tends to proceed at a much faster pace with vendor due diligence than without it, increasing the certainty of closing the transaction.
Related services
Transaction Advisory Services
Baker Tilly’s transaction advisory services team provides straightforward advice to clients on every critical business decision before, during and after a transaction.
Valuations
Baker Tilly’s valuation professionals provide supportable, defensible and unbiased valuation opinions that can stand up to the highest levels of scrutiny.
CFO Advisory Services
Baker Tilly provides critical advisory services and support to financial leaders, business owners and investors that meet the unique challenges, complexities and the ever changing environment the office of the CFO faces.
Merger & Acquisition Tax Planning
Baker Tilly helps identify tax issues, opportunities and insight into alternatives that can allow you to make informed decisions throughout the transaction process.