Mergers & Acquisitions

Whether you are looking to expand, consolidate, or reposition in the market, our M&A experts are here to facilitate your journey toward success.

What is Mergers & Acquisitions service?
Mergers & Acquisitions services are designed to assist businesses, investors, and other stakeholders in various aspects of mergers, acquisitions, and other strategic transactions.

They are typically provided to help clients maximize profitable opportunities, facilitate the synergy assessment, and protect business owners from investing in a company that’s on the brink of bankruptcy.

To be specific, we would support in:

  • Strategic planning: We advise clients on their overall M&A strategy, including identifying potential targets or buyers, assessing market opportunities, and determining the best approach to achieve their goals.
  • Valuation: We conduct comprehensive financial analysis to determine the value of a target company or business, considering factors like financial performance, assets, liabilities, and industry benchmarks.
  • Due Diligence: We perform in-depth Legal and Financial due diligence investigations to identify potential risks and opportunities associated with a transaction.
  • Deal structuring: Assisting in structuring the deal terms and conditions, including negotiation of purchase prices, payment methods, contingencies, and other contractual details.
  • Tax and legal compliance: We evaluate the company’s compliance with tax laws and legal regulations and identify potential liabilities and threats.

OUR STEP-BY-STEP PROCESS

Frequently asked questions

What is Financial Due Diligence (FDD)?

Financial Due Diligence is a comprehensive and systematic assessment of a business or investment opportunity’s financial health, performance, and risks.

This is an essential step before entering into a transaction, such as a merger or acquisition, business partnership, or internal audit.

Before making any informed decision, it is crucial to see the whole picture. FDD empowers you with valuable insights into the target company’s detailed financial information. Considering that hidden risks can contain investment pitfalls, the findings would protect your business from investing in a company that is on the verge of bankruptcy.

Especially, detailed financial data can become the leverage during negotiations, regarding these terms and conditions: Purchase price, payment terms, among others.

The duration of the FDD process can vary based on objectives of the due diligence, complexity of the transaction, size of the target company, industry landscape, number of parties involved, and others.

Generally, this process can take 6-12 weeks.

Both processes would investigate financial information, but they also have certain differences:

Financial Due Diligence:

  • Objective: To assess the financial health, performance and risks of a target company to evaluate the transaction’s feasibility and make the informed decision.
  • Scope: Covering various aspects beyond financial statements, such as market analysis, regulatory compliance, operational performance, and synergy potential.

Financial Audit:

  • Objective: To provide an opinion on a company’s financial statement’s fairness, accuracy, are typically performed annually or periodically for statutory compliance purposes.
  • Scope: The scope of a financial audit is defined by auditing standards and compliance with accounting principles.

We commits to maintaining the confidentiality of all the information we receive and exchange with Clients.

We issue the Non-Disclosure Agreement (NDA) and require Clients and any relevant parties to sign it before starting the due diligence process. NDAs outline the terms of confidentiality and the consequences of unauthorized disclosure.

Moreover, we also maintain secure data storage to protect sensitive information from unauthorized access or cyber threats.

For a comprehensive FDD process, you need to provide these documents:

  • Financial statements: Include balance sheet, income statement, and cash flow statement in certain years.
  • Tax returns: Include official documents filed with the government or tax authorities to report income, expenses, and other relevant financial information.
  • Corporate structure and ownership: Details about the company’s legal structure, ownership, subsidiaries, and related parties.
  • Revenue and expenses information: Detailed lists of documents include income statement, sales and purchase invoices, bank statements, contracts, etc.
  • Asset and liability information: Detailed lists of assets (real estate, equipment, inventory, and intellectual property), liabilities (loans, debt, and leases).
  • Working capital: Including accounts receivable, accounts payable, and inventory management.
  • Tax and legal compliance: Documentation related to regulatory filings, permits, licenses, pending litigation, and any other compliance record.

By providing a comprehensive assessment of the target company’s financial health, performance, and risks.

To be specific, through the examination of target company’s financial statements, debt and liabilities, tax and regulatory compliance, this findings help identify any inconsistencies or red flags that could affect the transaction.

Furthermore, this process also assesses the feasibility of post-merger synergies and the target company’s position and challenges within its competitive landscape.

Here are common challenges during FDD and potential ways to address them:

  • Incomplete or inaccurate financial data: Request additional documentation and perform data reconciliation.
  • Hidden liabilities and risks: Work with legal experts to address potential risks in contracts, legal documents, and regulatory compliance.
  • Complex organizational structures: Develop a clear chart and explanations of related-party transaction.
  • Non-compliance with tax regulations and legal requirements: Identify and develop strategies to solve areas of non-compliance before finalizing the deal.
  • Failing to assess potential synergies: Conduct a detailed analysis on operational efficiency, revenue growth, and market share.