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Buyers Due Diligence Services

Buyers Due Diligence Accounting Services

Due diligence is a process where a qualified person examines a target Company to determine if the targets representation in it prospectus and offer deck is fair and reasonable. The process’ goal is to ensure our client, the buyer, has all the relevant facts necessary to make an informed decision about the target. The process is centered on discovery and verification of information provided by the target, specifically any risks the company may be facing currently or in the future. The process requires a deep dive into numerous aspects of the target company from its culture, assumptions related to the development of value, governance, customer lists and working capital to mention a few.

CPA Due Diligence Accounting

The Need to Protect Against the Unknown Through the Verification of Information and Data

24 projects with a total transactional value of $574,385,000.

Our experience is with companies that are big and small, both public and private. We have completed projects in industries such as distribution, manufacturing and professional services.

Our participation has been with transactions averaging $24 million.

Managing the Due Diligence Process

Whether it is a limited analysis of specific categories or a complete analysis, the knowledge you will gain from our work will aid you in optimizing your organization's decision-making ability and aid in making the integration of the target into your company easier. We will customize our engagement to include the areas of risk and data verification with which you are most concerned.

Once we are engaged we will create a secure portal to where information can be exchanged. Access is controlled and the information is password protected.

We will read and consider the seller's informtation deck, and request the necessary information and documents to begin our analysis.

Very early in our engagement we will talk to the seller's management and leadership team. This initial discussion is introductory in nature to meet the individuals involved and to gain a basic understanding of their business.

We will analyze the uploaded information and develop a more detailed list of questions primarily for both the seller and buyer.

Numerous conversations and further requests for information will occur as necessary. The depth of analysis usually depends on the size of the transaction, the known risk areas of the target's industry, and the general risk level of the specific buyer.

When our analysis is completed, we will meet with you and discuss our findings. Often, this discussion results in more questions to consider and address. Since communication between The McQuillan Group and our clients is continual, often these meetings are focused on a few areas of high concern.

Ultimately the conversation moves to EBITDA, synergies, and operating and administrative expense savings. Given this, our engagement will be focusing on these points from the initial hours of our involvement.

Areas of Due Diligence

  • Synergies and EBITDA Projections

  • Accounts Receivable Quality

  • Asset Verification & Valuation

  • Benchmarks: Industry Analysis

  • Business Valuation Calculations

  • Capital Expenditure History & Requirements

  • Cash Conversion Cycle-Collection Cycle

  • Cash Flow Analysis

  • Customer Concentrations

  • Customer Credits: Amount & Reasons

  • Employee Compensation & Benefits

  • Environmental Related Risks

  • Financial Ratio Analysis

  • Financial Statement Quality & Accuracy

  • Human Resource Analysis

  • Insurance Cost Analysis

  • Intellectual Property

  • Inventory Contractual Limitations

  • Inventory Management: Accuracy & Value

  • Key Personal

  • Leadership Capacity & Effectiveness

  • Liquidity and Working Capital Analysis

  • Litigation & Regulatory Risk

  • Maintenance & Safety Reviews

  • Management Capacity & Effectiveness

  • Market Analysis

  • Non-Operating Assets and Liabilities

  • Operational Analysis

  • Organization Chart

  • Organizational Life Cycle

  • Pricing Issues-Commodity vs. Value Pricing

  • Profitability Analysis and Projections

  • Project Management Capabilities

  • Quality and Claim Analysis

  • Quality of Earnings

  • Related Party Benefits

  • Risk Areas

  • Sales & Project Cycle Time

  • Strategic Planning Capacity

  • Succession Planning

  • Supply Chain Management and Risk

  • Supply Change Risk & Contract Limitations

  • Technology Review & Budget

  • Trend Analysis

"In God we trust; all others bring data."

- Dr. W. Edwards beming: Quality Guru

Whether you are looking into buying a Company, engineering an organizational turnaround, or embarking on improving working capital, you need to understand the specific situation and circumstances that influence your decision-making process. Do you just trust the information you are given? Do you blindly make decisions based on the data presented?

Of course you don't! Due diligence is the process that is undertaken so surprises do not occur and resources like cash are not wasted. A car might look better with a new paint job, but will it get you to your destination? From your point of view, the paint looks great, but does the car have an'engine?

The McQuillan Group aids buyers of companies in better un-derstanding what they are buying by studying the information provided by the seller. We probe beyond the presented information. We discover the historical context of information and assess its quality. We want to understand the risks related to an acquisition, the quality of a targeted customer base, and the capacity to achieve forecasted EBITDA. The due diligence process focuses on many other areas so transactional confidence is maximized and buyer's remorse avoided.

The first step to a long-lasting relationship with a purchased enterprise is knowing what you are buying and not over paying for it. Integrations of cultures is always stressful, and added stress from tight cash flow never helps the overall situation.

The McQuillan Group also aids clients in preparing their company for a sale. To get that great transaction price, a company must be prepared. We will apply the same methodology that a potential buyer would apply and provide an honest assessment of what we find. We will work with the company to make the necessary corrections to minimize the identified detractors of value.

  • Due Diligence Services

  • Working Capital Minimization

  • Liquidity Improvement

  • Growing Market Share

  • Strategic & Operational Planning

  • Scenario Planning

  • Strategic Planning

  • Flexibility & Resilience

  • Turnaround Management

  • Tax Preparation

  • Tax and Estate Planning

  • Exit Planning

  • Audits, Reviews, & Compilations

  • PA Film Tax Examinations

  • Business Valuations

We are not your typical CPA Firm!

Organizational resources are always limited. The choices companies have regarding mergers and acquisitions will grow given the retirement of the baby boomer generation. There are going to be more companies for sale than interested parties to purchase them. Good acquisition candidates will demand a premium price. Given this, make sure not to over pay. Let us help. Our valuation services can present a series of values based on a wide range of assumptions. Our scenario planning presents probabilities of financial outcomes that are valuable and useful when making critical decisions. We are experienced and our common sense business approach provides buyers and sellers with valuable insight. We can help grow your organization through strategic acquisitions and divestures.

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