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Due Diligence For Business Transactions

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We recognise that every due diligence process is unique in its own right. We also understand the importance of customising our response and work to align perfectly with your requirements, leveraging our extensive knowledge and expertise in specialist markets.


Our approach is influenced by the specific nature of your goals, whether it involves pursuing a significant platform deal, a standalone acquisition, a smaller complementary addition, or the sale of a portion or the entirety of a company. We adapt our strategies to best meet your needs in each scenario.


Value-added Reporting And Advice


It is important that clients to have access to relevant and comprehensive information before making critical acquisition decisions. To support them in this endeavour, we offer timely and value-added due diligence advice and reports.


The success of an acquisition is often contingent upon increasing sales, entering new markets, streamlining costs, and leveraging shared overheads. However, the quality of financial due diligence conducted on the target company serves as the bedrock for a deal's success.

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Friend Partnership Approach To Due Diligence


Our typical diligence exercise for clients targeting a business involves the following key steps:


  • Initial Review: We conduct an initial review of the target company's business to identify any significant "red-flag" issues at the earliest stage. This allows our clients to make informed decisions on whether to proceed with the transaction or not.
  • In-depth Analysis: We perform a comprehensive analysis of the target company's historical performance, cash flows, assets, and liabilities. This provides valuable insights into the company's financial health and stability.
  • Business Drivers and Risk Assessment: We identify key business drivers, analyse profitability trends, and assess significant risk concentrations within the target company. This helps our clients understand the factors influencing the company's performance and potential risks involved.
  • Quality of Earnings: We evaluate the target company's quality of earnings, specifically looking for any indications of overly aggressive accounting policies that could impact the deal's outcome.
  • Financial Systems and Controls: We review the target company's financial systems, controls, policies, and procedures to assess their effectiveness and identify any areas of concern.
  • Management Forecasts and Working Capital: We critically analyse the target company's management forecasts, including evaluating the business's working capital requirements.


In addition to the above, our reports encompass the following elements:


  • Key Issue Summary: We provide a concise summary of the significant issues identified through our diligence process.
  • Synergies and Benefits: We identify potential synergies and post-acquisition benefits for the client.
  • Risk Assessment and Implications: We offer our perspectives on the associated risks and implications for the deal, including integration and other post-deal considerations where applicable.


By delivering comprehensive due diligence reports, we aim to equip our clients with the necessary insights to make informed decisions and navigate the acquisition process effectively.

How Long Does An Undertaking Of Due Diligence Take?


The timeframe for conducting due diligence varies depending on the size of the organization under analysis, ranging from a few days to several months. For small businesses, the process should generally be swift. Typically, the entire process should be completed within 60 days or less.


To ensure efficiency, it is advisable for entrepreneurs, investors and businesses to plan ahead, determine your research avenues and establish clear boundaries on your objectives.


How We Can Assist


Friend Partnership is a forward-thinking firm of Chartered Accountants, Business Advisers, Corporate Finance and Tax Specialists, based in the UK.


Due diligence can be a complicated and time-consuming process. However, our experienced team of business accountants can assist you on this and other business and accountancy related matters.


You can get in touch with us on 0121 633 2000 or alternatively email us at enquiries@friendllp.com.


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