Case Study Assurance Services

How We Can Help with Acquisitions

A closely held company wanted to acquire another company. Time was of the essence, and they needed fast answers to the following questions:

a) Was the target company worth buying?

b) What was the best price they could negotiate?

c) Would there be sufficient projected cash flow to finance the purchase?

We met with the client to fully understand the nature of the acquisition. We decided on a three-step, team approach:

1. Our first step was to form the right team to determine all due diligence necessary to properly evaluate the target company.

2. We met with the target company to tell them what information we needed, and we set a schedule to complete the due diligence as quickly as possible. With the due diligence in hand, we played an important advisory role in negotiating the transaction, including price, staff retention, and compensation packages.

3. We prepared a projected cash flow analysis to help obtain financing. Our client was able to safely grow its business with an acquisition that worked.

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