Buy-side due diligence

The client's situation

A client wants to acquire a target company or business activity. As part of a process, which is generally managed by a bank, our client benefits from a period to perform a due diligence on the target company. The client then entrusts us with the task of analysing the past and projected financial and economic information that has been provided and preparing an analytical report.
According to the situation, our client may wish to forward the results of this work to their partners (to joint investors or bankers, etc.).

The solution proposed by Accuracy

During a so-called Buy Side Due Diligence assignment, we carry out a variety of work adapted to each situation:

  • A review of the Vendor Due Diligence report
  • A review of the information provided via a Data Room
  • On-site diligence involving the target management and financial teams

The objectives of these assignments include:

  • An analysis of the target’s historical financial performance making it possible to assess the reliability of the main financial indicators (EBITDA, EBIT, etc.).
  • An analysis of the main balance sheet items (working capital requirements, net financial debt) risks and off-balance sheet commitments.
  • An analysis of the forecasts put forward by the target (budget and business plan) making it possible to assess the target’s growth potential.
  • Other specific activities to be defined on a case-by-case basis include: business review for contracting activities, reviewing the level of booked orders, etc.
  • The preparation of a new business plan to form the basis of a price estimate and the submission of a proposal.

The Accuracy difference

  • The ability of our teams to combine a critical review of the business plan’s "top line" (including the market, competition, prices and changes) and the coherence of the cost structure, both for past and projected data.
  • Our sector-specific experience
  • Our capacity to support our clients during the negotiations of the financial clauses of the acquisition contract. Our Forensics, Litigation & Arbitration specialists review the agreements, mindful of any possible litigation in order to avoid any potential problems.