The due diligence
Due diligence is the process of evaluating a business situation from all aspects before making a decision. Due diligence is often performed when buying a business, but there are many other situations in which due diligence might be performed.
Due diligence is not a general investigation, but it includes specific elements which may vary based on the situation. Due diligence is performed to protect both parties, but primarily the purchaser, in uncovering potential liabilities and financial matters, to make sure nothing is hidden.
At Repucover, we help investors make better deal decisions by performing due diligence, assessing performance improvement opportunities and providing a post-acquisition agenda. Our experience and worldwide network allowed us to help clients quickly develop an accurate assessment of key industry performance issues, including cash flow drivers, relevant market and customer benchmarks and exit options. In addition to external assessment, as timing and protocol allow, we also conduct a thorough internal one, interviewing the target company’s management, as well as reviewing its customer base, personnel and operations. Our team of experts will also offer you the agility necessary to evaluate and close deals, while mitigating risk and identifying the potential for a healthy return on investment.
Our Integrated Due Diligence services include:
Commercial Due Diligence:
When making an acquisition, investors often search for some critical questions such as: Does the company have a healthy position in the industry? Is the industry fundamentally attractive? Do significant value creation opportunities exist?
At Repucover, we are committed to bring an approach to commercial due diligence that generates insights on specific targets or selected industries, and guides professionals in their investment evaluation and underwriting process. Our commercial due diligence program considers these four questions by evaluating:
- Positioning of the Target Company: We analyze the drivers of value creation in the industry, differentiating factors for the company and its sustainability.
- Industry Attractiveness: Repucover considers the size of the addressable market for the company/product; the growth drivers and projections in the addressable market; and the fundamental profitability drivers of the market. We then often build our own detailed market models with projections for the upcoming years.
- Value Creation Opportunities: Repucover focuses on ways to enhance revenue and reduce cost, opportunities for consolidation or realignment in the industry and implementing operational improvements.
Our Commercial Due Diligence program is customized to each client’s individual needs and level of intensity. Our commercial due diligence assignments can last anywhere from a few days to several weeks, and are generally driven by a potential closing date or the complexity of a target company.
Operational Due Diligence
Our operational due diligence services focus on the functional and departmental process of your target. This may include an assessment of the target’s management team, relationships with key stakeholders, human resources systems, and information technology systems, among others. Our team will investigate current performance and identify opportunities for improvement and cost savings.
Our team professionals also assist our clients in analyzing manufacturing operations, supply chain and distribution channels, procurement and supply, information technology, and back-office operations such as finance, accounting, and human resources.
Financial Accounting Due Diligence
At Repucover, our professionals have significant experience on both the buy and sell side of transactions across all industries including healthcare, financial institutions, energy, environmental services, technology, and education. Our team uses a focused and tailored approach to rapidly identify and understand potential deal breakers, value drivers and other areas of specific interest to our clients.
Our Financial Accounting Due Diligence services include:
- Evaluate management’s forecast
- Identify key business drivers, trends in profitability and significant concentrations of risk
- Assess the target’s quality of earnings, including the identification of overly aggressive accounting policies and the assessment of the adequacy of judgmental accounts, as well as GAAP accounting and reporting compliance
- Review on and off balance sheet assets and liabilities
- Analyze cash flows (e.g, capital expenditures, working capital changes, etc.)
- Perform both buy-side and sell-side due diligence
- Conduct comprehensive discussions with management and their advisors
Tax Due Diligence
At Repucover, our Tax Due Diligence team is comprised of seasoned tax professionals experienced in providing practical tax advice to corporate and private equity buyers throughout the transaction lifecycle.
Our Tax Due Diligence services include:
- Review and evaluate executive compensation matters
- Review and evaluate significant tax attributes, credits and incentives
- Review target’s historic tax profile, planning, tax examination, acquisition/disposition, and filing history to assess potential risks and opportunities
- Identify matters to be addressed post-closing, including integration related risks and opportunities
- Review and comment on purchase agreement and disclosure schedules
- Model transaction scenarios
- Evaluate potential acquisition structures
IT Due Diligence
Business applications, such as IT infrastructure and organizations, are often critical assets, but management typically understates their impact on a company’s risk profile. At Repurish, we have developed an approach to quickly assess how efficiently the IT function is performing, as well as determine the level of risk to stakeholders.
Our professionals provide hands-on leadership and management of IT functions for both distressed and healthy organizations. Our primary objective is to identify opportunities that reduce costs or increase the efficiency of IT across an enterprise or across a portfolio.
Our IT Due Diligence services include:
- Review IT Operating and Capital Budgets
- Assess IT Infrastructure and Network Technologies
- Recommend appropriate level of IT spend based on the company’s size and scale
- Evaluate if IT assets will likely scale to meet business growth projections
- Develop budget approximations, if needed
In order to learn more about how our due diligence service can be helpful for you, please navigate to our contact us page. We will be glad to help you in any case.