Due Diligence – Buy/Sell

Make sure it’s not just a good deal, but the right deal

All businesses involved in an acquisition or other private-equity transaction, either as buyers or sellers, need to make sure that the financial information they hold is as accurate as possible. This prevents paying too much (or in a seller’s case receiving too little) and, more importantly, ensures that business objectives are met.

Any organization considering a deal needs to verify all assumptions. Financial due diligence provides peace of mind to both corporate acquirers and financial sponsors by analyzing and validating all financial, commercial, operational and strategic assumptions.

We help corporate and financial buyers critically assess key opportunities, confirm deal assumptions, and analyze and validate all the financial, commercial, operational and strategic assumptions being made — ultimately ensuring there are no process pitfalls. 

CFGI helps drive stakeholder value in a transaction by providing the following:

Financial & accounting

  • Pro forma EBITDA
  • P&L trend analyses and operational reviews
  • Balance sheet and working capital trend analyses
  • Purchase accounting considerations
  • Off-balance sheet and contingent obligation identification
  • Purchase contact reps, warranties and indemnifications considerations

M&A tax services

  • Identifying tax exposures
  • Advising on tax-efficient transaction structures
  • Providing SPA/APA advice

Operations & technology (IT)

  • Assessing IT infrastructure and capabilities
  • Identifying and assessing IT improvement projects
  • Identifying and quantifying potential one-time costs
  • Assessing planned levels of IT capital expense (CAPEX) and operating expense (OPEX) to support growth

Why CFGI?

The finance and accounting experts at CFGI have extensive experience helping organizations make financial decisions that put them on a track to lasting success. Buy/sell due diligence plays a crucial role in that path to long-term, strategic wins.

Our advisors help buyers check every box, from compliance with regulations to insurance coverage, licenses and permits, key financial information, intellectual property, publicity, IT systems and more, so that they can feel secure in their investment and avoid unwanted surprises down the road. 

Likewise, we help sellers understand the efficacy and value of their information systems, personnel, financial operations, workflow organization, revenue, risks, liabilities and other aspects of their organization that influence valuation. We can also provide recommendations for value-reducing issues and ultimately facilitate a smoother sales process. 

Never trust an assumption you can’t verify — as a buyer or as a seller.