Acquisition Due Diligence Service

Acquisition due diligence determines whether or not the financial information of a target company reflects reality, and ensures clients focus on and identify factors in business that are critical to its success and future. A thorough Acquisition Due Diligence process helps you understand a deal and/or a business dynamics, value drivers, motives, risks, synergies, and ultimately, pricing.

At Farahat & Co., we focus our Acquisition Due Diligence service on key areas that have a significant impact on value. Our team of specialists leverages their deep local and national transaction experience to uncover hidden opportunities and risks to help maximize the value captured. Our team of senior finance and accounting specialists helps buyers in:

Improving your understanding of a target business; therefore, increasing the likelihood of a deal achieving its objectives
Identifying and understanding critical success factors; thus, improving your knowledge of relevant issues and aiding you in formulating informed business decisions; and
Highlighting strengths that may be built upon, as well as weaknesses that need resolution

Acquisition Due Diligence: Objectives

The objectives of our Acquisition Due Diligence service can be categorized into three stages in an M&A lifecycle.

Preliminary Acquisition Due Diligence

Identification of business risk(s)
Research of contact target and scouting issues
Make the go or no-go decision

Detailed Acquisition Due Diligence

Analysis of the data room, as well as other relevant external information
Deal valuation, structure, and integration
Make the go or no-go decision

Final Acquisition Due Diligence

Obtain the signed Definitive Agreements
Organize for integration
Arrive at favorable final pricing and close terms

Areas that our Acquisition Due Diligence Service Addresses & Evaluate

Every transaction is unique. This means the depth of the due diligence that’s needed on a certain topic varies, depending on a deal’s dynamics and the company. Still, certain matters about due diligence are included in transactions. Here are the areas that our Acquisition Due Diligence service addresses and evaluates:

Preliminary Due Diligence

Review of Offering Memorandum (if any)
Preliminary or initial valuation
Analysis of relevant data
Identification of core specialists and team
Collection of external data
Development of business case
Getting management approval; and
Preliminary non-binding expression of interest (EOI) for the auction process

Detailed Due Diligence

Refining of valuation
Site visit and analysis
Deal structure development
Identification of integration manager
Provision of due diligence reports
Submission of final term/bid sheet

Final Due Diligence

Collection of outstanding data
Data analysis
Negotiation of definitive agreements
Evaluation and analysis of the final contract
Development and review of deal structure and warranties
Reaching final terms
Execution of closing agreements
Integration planning

A Professional and Targeted Acquisition Due Diligence Approach

Whether you’re considering buying with exclusivity a business up for auction or thinking of undertaking a speculative approach, you’ll maximize your ability to make an informed buying or investment decision with a swift and thorough analysis regarding key issues.

Our focused Acquisition Due Diligence service, starting from transaction screening and origination up to the execution of closing agreements and integration planning, will deliver you high-quality analyses required in supporting buying or lending decisions. The Acquisition Due Diligence specialists of Farahat & Co. can cover the following disciplines: tax, financial, integrity, operational and IT, strategy and commercial, and environmental and sustainability by leveraging their local and national experience and resources.

Acquisition Due Diligence Service