Financial Due Diligence
Due diligence - an essential step in a business acquisition transaction
A due diligence is an essential step during an acquisition process. It analyses the key drivers and core functioning of an enterprise. The objective of a due diligence process is to identify the strengths and weaknesses of the target and to ascertain the risks the buyer faces in acquiring the business.
A detailed and well performed due diligence is a critical step leading to a successful acquisition.
A due diligence process should:
- Identify the country risk as well as provide an understanding of the business, tax and legal environments
- Ascertain the sector, transaction and company specific risks
- Collecting a set of information as a basis for conducting a business valuation and, as a further consequence, providing a price offer.
Due diligence is the key to success in an acquisition transaction
At Cann Advisory, we believe that a properly conducted financial due diligence process and the knowledge gained in the engagement are key determinants of success in negotiations and the preparation of the sales agreement properly securing the interests of the acquirer. Our experience in due diligence processes allows us not only to support clients in developing the optimal negotiation strategy, but also to identify key risk factors that, through their impact on the value of the acquired company, should be properly addressed in the transaction documents.
Our financial due diligence services are tailored to the individual needs of our clients and are built into the comprehensive nature of due diligence analyses.
Working with leading law and tax consulting firms, we are able to offer a full range of due diligence process that includes not only financial analyses, but also legal and tax aspects of the target company.
Thanks to such a comprehensive approach, we are able to participate in the overall process of analyzing the acquired entity, giving the appropriate information basis and enabling the buyer to make informed business decisions. Our experience and active involvement in each project make each financial due diligence we are involved in an important success factor in acquisition processes.
