Financial Due Diligence

Among the stages of a transaction lifecycle, smooth and on-point Deal Execution is paramount to the deal success. Mazars‘ Transaction Services team can help you in each of the following steps:

BUY-SIDE DUE DILIGENCE

Due diligence is known to be the most time-consuming stage throughout the M&A process. This is why we keep our approach efficient and flexible to adapt to different circumstances.
Our experience in advising the buy-side enables us to figure out the risks your deal is facing, and to provide our solutions accordingly:

Your focus and challenges:

Our solutions:

  • Evaluate past and future performance of the target
  • Identify the factors that could make or break the transaction
  • Secure the parameters of the purchase price
  • Understand the key drivers of the financial performance
  • Analyse the key elements affecting the transaction price (quality of earnings, net working capital, and debt-like items)
  • Identify risks for which warranties are required

SELL-SIDE DUE DILIGENCE

Mazars’ all-rounded services on sell-side can provide the crucial confidence you and the buyers need for decision making.

Your focus and challenges:

Our solutions:

  • Maximize the value from the divestiture process
  • Deliver the confidence the potential acquirers need
  • Limit broken deals due to surprises
  • Identify and rank value-generating factors
  • Prepare pro forma financials, especially for carve-out situations
  • Analyse historical performance
  • Draft and challenge the business plan
  • Deliver a vendor due diligence report to be used by potential buyers

SPA NEGOTIATIONS AND DEAL CLOSING

Issues arising from SPA negotiations can delay the timetable significantly, and deal closing obstacles could lead to disputes or even future complications.
Mazars’ assistance includes:

  • Review of the completion accounts
  • Review and advice on warranties and clauses to be included in the Sale and Purchase Agreement