Accuracy

CLIENT SERVICE

CASE STUDIES

Vendor due diligence

Situation

  • A large group in the pharmaceutical sector wants to sell a business unit operating in France and various countries
  • The business put up for sale has extensive relationships with other divisions of the group (in particular R&D operations)

Our role

  • Accuracy is appointed to prepare a full scope Vendor Due Diligence report on the operations of the Business Unit (financial and tax due diligence)
  • The profitability of the Business Unit is restated in details to carve out the R&D operations that are not part of the transaction
  • Accuracy also prepares an extensive description of the products and their competitors in each relevant medical classes (quantitative market share documentation)
  • Accuracy reviews the business plan prepared by the seller to assess its reliability and document its consistency with historical financial pro forma information
  • We meet the different potential buyers to present our work and further detail some of our analyses

 

Outcome

  • The business financial performance is presented efficiently to four different potential acquirers
  • Our report is used to document a transaction completed over a relatively short period of time

Value added for our client

  • The Vendor Due Diligence was key to encourage the seller to prepare the relevant information and address relevant issues in advance of the transaction process
  • Confidentiality of the disposal project was maintained until late in the process with the organization of the disposed business
  • Our report allowed the M&A banker to attract international trade buyers
  • Buyers were provided with extensive information and performed limited additional work