Transaction Advisory Services
Delivering value at every phase of the transaction
In any deal, stakes are high. Timelines are tight. Sound judgment and professional advice are a must. For the last decade, we’ve focused on the mid-market deal space which allows us to quickly identify issues and formulate recommendations to help you close the RIGHT deals quickly and efficiently, while also working closely with your management team to strengthen growth and financial performance.
Not only do we integrate all the necessary components surrounding a transaction, from pre-deal due diligence to post-closing integration services, we’ll do this in as seamless a way as we can, so that ownership can optimally transition for all stakeholders.
Due Diligence – Buy/Sell
Making sure it’s not just a good deal, but the right deal
All businesses involved in an acquisition, either as buyers or sellers, need to ensure that the financial information they hold is as accurate as possible, not only to prevent paying too much (or in a seller’s case receiving too little) but also to ensure that business objectives are being 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 the financial, commercial, operational and strategic assumptions.
We work with corporate and financial buyers, helping them critically analyze key opportunities, confirm deal assumptions, 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
- Identifying tax exposures
- Advising on tax efficient transactional 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
There when you need us
Frequently, companies are left with inadequate accounting and financial leadership to execute on critical initiatives. Our Financial Operations (FinOps) practice is focused on addressing the needs of private equity firms as they integrate their portfolio companies and create value throughout the investment life cycle.
The first 100 days following the close of a transaction are critical to the ultimate success of the deal. Using our technical accounting expertise and deep operational know-how, we provide clients with integrated support during critical transition periods and throughout the investment holding period. Our team becomes a crucial extension of your team, bridging the gap between value creation strategy and boots-on-the-ground execution.
Whatever the reason, CFGI offers significant senior operating experience in the areas of budgeting and cash flow forecasting, treasury management, working capital management, financial reporting, and financial planning and analysis.
Getting the deal done right
The ability to effectively execute a transformational event — such as an acquisition, merger or divestiture — plays a key role in enhancing an organization’s value. Successfully executing a deal is the materialization of a growth strategy and sends a strong message about the direction of an organization. Achieving deal success requires the ability to navigate challenging transaction accounting and reporting in order to mitigate unexpected results.
CFGI provides transaction accounting assistance to help organizations open the books for a newly acquired business and establish effective financial reporting. This change over is often very complex and requires experienced transaction accounting specialists who fully comprehend the requirements and regulations involved.
CFGI’s transaction advisors have extensive experience in transaction accounting and reporting. This experience, combined with the finance experience of being part of a deal on both the buyer and seller side, means we reduce the number of hiccups thus allowing organizations to stay focused on executing the business strategy. We assist throughout the deal life cycle from pre-acquisition due diligence to deal-closing, day-one on boarding.
CFGI transaction support includes the following:
- Closing balance sheet prep (Cash-to-accrual basis accounting/NWC true up)
- Opening balance sheet prep (purchase accounting)
- ASC 805 technical white paper
- Valuation (intangible/tangible)
- Accounting policy optimization
- Significance test calculations
- Carve-out financial statements
- Acquisition 8-K preparation
- Pro forma financial information
- Financial statement footnote drafting
- Audit readiness
Precise valuations for creating and preserving worth
Business valuations are commonly required in acquisitions, stock compensation, impairment testing, estate planning, divorce, shareholder disputes, buy/sell agreements and other situations. Whether you’re involved in the sale or purchase of a business, or just complying with complex financial reporting and tax requirements, CFGI valuation specialists provide objective and independent assessments of value for the purposes of financial reporting, transactions and family-business succession planning.
We provide financial opinions to private equity firms, privately-held and publicly traded companies, attorneys, financial advisors and high net worth individuals seeking to turn critical and complex financial issues into opportunities for growth, resilience and long-term sustainability. Allocating fair value in an acquisition, valuing equity securities and debt instruments, measuring interests in a closely held business for estate planning purposes, are just some of the many areas in which we have valuation experience.
CFGI valuation specialists can provide accurate and defensible valuations in the following areas:
- Purchase price allocations – independent valuation of the assets acquired, and liabilities assumed in a business combination, helping allocate the value of the purchase consideration to the identifiable tangible and intangible assets acquired and to goodwill (ASC 805).
- Stock based compensation – valuation of equity securities, employing a full range of valuation techniques, including Monte Carlo simulation analysis, binomial lattice models and Black-Scholes (IRC 409A / ASC 718).
- Fair market value – determining the fair market value of company stock so that you can execute business decisions in the most tax-efficient manner. We assist in determining fair market value while navigating changing tax law and shifting regulations.
- Impairment testing – ascertaining the fair value of goodwill and indefinite-lived intangible assets for potential impairment, as well as performing the recoverability test for long-lived assets (ASC 350/360).
- Strategic planning – valuing potential acquisition targets, buy-sell planning and granting stock options.
- Estate and gift tax – valuation of interests in closely held businesses or other securities, as well as discount studies for partnerships or other estate planning vehicles.
- Litigation support – valuing business interests or quantifying damages when encountering situations such as marital dissolution, shareholder disputes or events causing disruption.