Buying or selling a business is no easy task. One of the most critical steps in that process is performing adequate accounting due diligence, no matter if you are on the buy or sell side a transaction.

 

Due diligence is an essential part of the mergers and acquisition process for parties on both sides of the transaction. However, proper preparation is key, especially if you’re looking to evaluate a complex investment opportunity and or avoid a deal that could potentially go sideways.

 

Buy and sell side accounting due diligence come with specific benefits and areas of concern. As experts in both buy and sell side accounting due diligence transactions, the Accounting Due Diligence Team has the resources and experience to assist you with all phases of the mergers and acquisition process.

 

Buy Side

 

As a buyer considering a potential acquisition, it’s important for you to not only identify a solid company that aligns with your overall business objectives, but also to acquire it at a fair price.  Proper accounting due diligence provides an objective and in-depth assessment of key areas that a buyer should consider before moving forward with the transaction. For example, performing various financial accounting analyses will help the buyer assess specific key risks involving the quality of earnings, quality of working capital, cash flow, assets and liabilities.

 

In most cases, a motivated seller’s goal is to close a successful transaction at the highest price possible. Setting aside appropriate time to perform sell-side due diligence before you go to market will give you a realistic valuation for your company and provide accurate information for you to present to potential buyers before you begin your search.