Financial due diligence for acquisitive businesses
Acquiring a rival business or a supplier can energise and transform your company. It can also expose it to risks and serious strategic challenges. Consilium’s Financial due diligence service for acquisitive businesses is designed to look beyond the numbers and tell the true story of your planned purchase.
This page outlines Consilium’s approach to FDD for acquisitive businesses, what our FDD reports cover and why we are a trusted partner of companies across the UK as they complete mergers and acquisitions.
- Consilium’s approach to FDD for acquisitive businesses
- What do our Financial due diligence reports cover?
- Why choose Consilium for FDD?
Consilium’s approach to FDD for acquisitive businesses
Acquisitive businesses have a different perspective on buying when compared to a private equity house. Their focus is not solely on investment returns but on a more nuanced set of considerations. At Consilium, we understand those subtle differences can make or break any acquisition.
Our Financial due diligence reporting for acquisitive businesses, therefore, covers four fundamentals:
- Strategic fit: Consilium’s track record in Mergers and acquisitions means we are well placed to assess strategic fit and identify the benefits of combining operations
- Integration risks: Our FDD reports answer critical questions about working capital and cash flow profile, operational overlaps, debts and tax liabilities. This includes determining how any deal might impact the finances of the acquiring business
- Sectoral considerations: By applying industry-specific knowledge, Consilium can accurately benchmark performance and identify any unusual trends or risky tactics
- Clear, actionable insights: Our corporate clients aren’t looking for hundreds of pages of technical data. They want clear, actionable insights that demonstrate what it means for them, their existing business and any future combined entity.
For a confidential discussion about your FDD requirements, please contact our lead Partner, Linzi Wilson. Alternatively, read more about our work in Mergers and acquisitions, and our Financial due diligence services.
What do our FDD reports cover?
Our FDD is always bespoke. We start each project with a detailed consultation to agree on a scope that reflects the priorities of the client. Reports are then structured to focus on anything from a light-touch review of only a few key areas, right up to a full-scope report that provides granular analysis of every aspect of a business.
An FDD report by Consilium Chartered Accountants on a business acquisition will generally cover:
- A thorough assessment of revenues, profits, costs, cash flow, margins, tax liabilities and debts.
- Assessing the robustness of the target company’s internal financial systems, controls, and governance
- Evaluation of integration risks such as systems, controls, company culture and red flag issues
- Outlining potential strategic benefits from combining operations – essentially, will your business be stronger or just ‘bigger’
- Scenario planning around future issues such as customer retention and investment to harmonise systems, training or compliance.
Why choose Consilium for Financial due diligence?
A business buying a competitor or downstream partner is not just buying its balance sheet. It is buying a customer base, supplier roster, operational strengths and weaknesses and more.
Consilium understands that acquisitive businesses need a trusted partner that goes beyond the numbers to spot hidden risks. They need a partner who can offer a clear picture of what they’re buying before signing on the dotted line.
Our Financial due diligence services are also highly cost-effective for businesses based in Scotland and around the rest of the UK. We are also experienced in international acquisitions and investments, and through our membership of AGN International, can advise on cross-border deals.
To learn more about our FDD services for acquisitive businesses, please contact our lead Partner Linzi Wilson.
Take a look at our track record of providing Financial Due Diligence services. Alternatively, meet the Corporate Finance team at Consilium Chartered Accountants.
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