M&A – Buy Side
Strategic expansion is a proven method for fast growth, but it is not without potential pitfalls. In the sale of a business, ownership knows all the facts and finances. Buying a business requires that you get knowledgeable and comfortable beyond the numbers in order to make a determination whether the purchase makes sense for your purposes.
Saying no to a deal may be the easy way out, but in many cases, it may not be the right decision. Herbein looks for ways to make a deal work for all involved parties.
Due diligence is a process that takes into account many divergent forces within an acquisition target. Some things are clear-cut, such as financial statements, current operations, information technology review, etc. Profitability analysis, management environmental factors, human resource functions, intellectual property valuation, etc. require review and careful consideration by a highly-experienced professional.
Determination of strategic objectives is critical. If your company has solid performance and extra cash on hand, an acquisition can capitalize on your momentum while also taking a competitor out of the mix, particularly if that competitor has assets or talent which could push your company forward. Geographic expansion, enhanced product lines, cost sharing, etc. are all worthwhile reasons to consider expansion.
Herbein puts our knowledge to work throughout the entire acquisition. We will work with you to formulate an action plan that contemplates the following:
- Onsite visit of target’s facilities
- Review of legal, financial, etc. correspondence
- Meet/interview target management and key personnel
- Business valuation
- Financial review – some combination of:
- Applying specific agreed-upon procedures to selected financial statement elements
- Auditing, reviewing, or compiling the target’s financial statements
- Auditing specified elements, accounts, or items of the target’s financial statements (e.g. inventory, accounts receivable, etc.)
- Developing pro forma or prospective financials
- Reporting on the target’s internal controls
- Assist with negotiations
- Tax consultation