We believe in putting together a director-led team that has the experience necessary to ensure that your transaction goes smoothly.
Our professional staff have a wealth of experience of in both due diligence and financial modelling.
Almost all corporate finance transactions require some form of due diligence. We will work with you from the outset to ensure that we address all of the general issues set out below. In addition, our report will also focus on key issues that are of particular importance to you.
The general issues that we would expect to cover in a due diligence report are:
- Valuation issues to aid you in price negotiations.
- Identification of potential “deal breakers” at an early stage of the transaction process.
- Provide proactive advice on the transaction to ensure that the optimum structure, from both a commercial and taxation standpoint, is used.
- A review of post completion forecasts and their achievability.
- A review of the sale and purchase agreement and associated warranties.
Purchaser due diligence
Once you have identified a business that you, or the company that you work for, have an interest in acquiring we will work closely with you. This starts from the day that your advisors first contact the vendors and continues through to the successful completion of the acquisition to ensure that:
- You commission the correct level of commercial and financial due diligence.
- Issues that could affect the purchase consideration are identified as soon as possible.
- Issues that may require further legal work, such as the drafting of vendor warranties, are identified and addressed.
- An appropriate vendor payment scheme is constructed for example purchase consideration may be deferred based on the performance of the business.
- Identifying obstacles that may stand in the way of successfully integrating the target business into your current operating structure.
Vendor due diligence
While much of the due diligence work carried out by accountants is performed on behalf of the purchaser it is also important for the vendor of a business to consider having due diligence performed on themselves.
The overriding reason for this is to ensure that the vendor is fully aware of, and properly briefed on, all aspects of the business that they are trying to sell.
While the process itself may be similar to a purchaser due diligence exercise, the end objective is different in that the process is aimed at maximising vendor return by allowing either:
- The resolution of any issues before the business is marketed and therefore maximising the sale price
- Selling the business ‘as is’ from a well informed position ensuring the business is sold for a fair price.
Lender due diligence
We have experience of working closely with banks and venture capitalists to carry out their pre-lending due diligence. Based on this experience we have adapted our working practices to ensure that:
- Our report addresses all of the key issues that may be of concern to the lender.
- We work with the borrower, and if appropriate the target business, to minimise the impact of the due diligence process on the transaction and the day to day operations of the target.
- Our procedures are structured to ensure that our reports are formatted specifically to meet client needs.
Grant due due diligence
RMT’s corporate finance team is leading UK providers of transaction support in the area of grant and soft loan funding. It has many years’ experience leading over 80 such transaction support assignments, covering the Regional Growth Fund (delivered by The Department for Business Innovation and Skills) and regional grant/soft-loan providers.
The management team’s strategies for the future and the forecast financial performance will always be scrutinised by lenders and investors when they are considering a project’s viability.
It is therefore essential that all forecasts are underpinned by robust financial models that can stand up to the scrutiny of lenders and investors. At RMT we have great experience in building and reviewing such models.
Please do not hesitate to contact us if you require transaction support.