Middle market companies across numerous industries face complicated market transactions.
Whether you are a corporate strategic buyer, private equity fund, mezzanine lender or other financial investor, your unique needs have similar end goals: minimize risk, enhance transaction proficiency and maximize the transaction value. Actions such as acquiring a company, obtaining additional capital or selling a business may pose complexities that require the assistance of an experienced advisor.
So that you may navigate such complexities with ease, DHG Transaction Advisory Services helps you overcome the common issues associated with any given transaction, including:
- Inaccurate accounting
- State and local tax compliance
- Outdated IT systems
- Failure to deliver or receive expected results
- Carve-outs issues for larger companies
- Incomplete due diligence
We are by your side throughout the transaction’s lifecycle.
Our goal for each transaction in which we are involved is to provide our clients with the appropriate information to allow them to proceed, renegotiate, restructure or withdraw from a potential transaction.
In order to help you gain a better understanding of the target business, we focus on the following primary areas:
- Quality of earnings and assets
- Working capital considerations
- Tax exposures and savings
- Cash-flow hazards
- Buy side and sell side due diligence
- Purchase price disputes
Your transaction needs call for global resourcefulness, national reach, local responsiveness and industry experience.
Buy-Side Financial Due Diligence
Corporate strategic buyers and financial investors seeking to acquire, merge with or invest in a business engage DHG to:
- Assist in gaining an understanding of the financial conditions of a target company
- Assess a normalized level of cash flows used for valuing a company
- Assess the quality of assets
- Identifying key transaction issues
Our Buy-Side Financial Due Diligence Services focus on the target company's business and profitability drivers as to provide the buyer with the ability to assess and analyze the potential acquisition at the proposed purchase price. Our due diligence assists our clients’ decision to proceed, renegotiate or restructure, or withdraw from the transaction.
Our Buy-Side Financial Due Diligence Services include:
- Quality of Earnings (EBITDA)
- Quality of Net Assets
- Working Capital Considerations
- Purchase Price Adjustment Analysis
- Analysis of Forecast
- Key Performance Indicator Analysis
- Customer and Product Price/Volume Analysis
- Accounting Department and Financial Reporting Documentation
- Other key business drivers
Sell-Side Financial Due Diligence
Companies seeking to sell their business trust in DHG to help them prepare for the requests of potential buyers. We leverage our merger and acquisition experience to help thoroughly prepare a corporation for the inquiries, documents and analyses that the potential acquirer will request. The transparency and quality of financial reporting that sellers can instill in their financial records may dramatically enhance the value of a deal.
Our Sell-Side Financial Due Diligence Services take an immense amount of pressure off of corporate executives and better prepare them for a business transaction. By utilizing our services to assist in the preparation of a transaction, our clients are better positioned to obtain maximum value for their company and reduce the risk of unexpected purchase price adjustments or surprises that could terminate a transaction.
Our Sell-Side Financial Due Diligence Services include:
- Financial Reporting and Accounting Process Analysis and Improvement
- Divisional Carve-Out Assistance
- Data Request Strategy and Assistance
- Transaction Planning
- Purchase Price Adjustment Analysis
- Working Capital Analysis
- Reverse Due Diligence
Tax Due Diligence and Structuring
Certain tax issues can make-or-break a transaction. Our experienced tax professionals collaborate with our resourceful finance and accounting due diligence professionals to summarize tax information that may affect your transaction. Our tax transaction services include, but are not limited to:
Compensation & Benefits
Operational and Information Technology Diligence
Buyers must understand the level of technological sophistication of the target company as part of an acquisition. Our team of IT and Risk Advisory professionals serve clients in a variety of industries by helping them build and adapt risk management capabilities in times of significant expansion and regulatory change. Our professionals leverage:
- Industry and public accounting experience
- A thorough understanding of changing compliance requirements
- A firm grasp on the impact of new processes and technologies that our clients use
DHG is experienced in providing risk management and advisory-related assistance in a number of areas:
- Internal Audits and Audit Plan Assistance
- IT Advisory Services
- Information Systems Controls Reviews (based on best practices and FFIEC guidelines for financial institutions)
- Assistance with IT-related documentation and testing associated with SOX 404
- Compliance Assessment for Privacy Requirements (GLBA and HIPAA)
- SSAE 16 and Agreed Upon Procedures
- Integrated Controls Reviews of the platforms and applications supporting key business processes
- Network Security/Vulnerability Assessments and Penetration Testing
- Consulting and Advisory
- IT and Operational Due Diligence Assistance, including IT platform, cost and scalability analyses
Post-Transaction Services
A transaction does not end with the signing of the sale and purchase agreement. Our Transaction Advisory Services professionals provide an array of offerings to help our clients navigate the complex issues that arise following the transaction closing. Our Post-Transaction Services facilitate the transition to new ownership and assist our clients in maximizing the value of the transaction. In addition, DHG strives to continue the relationship and provide audit and tax related services to the portfolio company.
Our Post-Transaction Services include:
- Purchase Price Allocation
- Earn-Out Calculations
- Closing Balance Sheet Assistance
- Working Capital Analysis
- Assurance Services
- Income Tax Services