In today’s rapidly changing marketplace, the need for transparent, independent transaction support on both the buy-side and sell-side has never been greater.
Our comprehensive approach to due diligence engagements is led by senior members of our management team and supplemented with professionals who maintain expertise in a wide array of industries.
The process begins by co-developing expectations with the potential buyer or seller. Our procedures are tailored to the particular areas of focus you have on your target acquisition or the areas of concern in the business you are selling. We focus on risk areas relevant to industry specialization and where accounting standards and application of accounting principles are most subjective. In short, we focus on identifying and mitigating areas of risk.
Sell-side engagements focus on pre-transaction planning by assessing your current accounting methods and processes, financial reporting obligations and your tax positions. We advise clients on areas of concern and help to implement processes, controls and reporting functions to address those concerns and bring your company into compliance with respective standards, practices and regulations in order to avoid pitfalls in the potential sale. We proactively advise clients on the tax implications of various structures and work closely with them during the exit process to minimize taxes and maximize after-tax cash. Our goal is to make sure everything is in order on the finance and tax side to allow for a smooth, timely and successful transaction.
Buy-side engagements focus on providing timely and relevant information to facilitate a thoughtful and successful investment decision.
The FML diligence process includes:
- Obtaining an understanding of the target’s operations, management, financial reporting process and internal control environment
- Analyzing key financial and operational metrics
- Reviewing financial statements and all other relevant documentation
- Assessing the quality of earning (see below)
- Assessing the target’s positions and exposures with regard to federal, state and international income taxes
Tax issues can have a major impact on the successful completion of transactions and post-deal integration. Early involvement and development of a tax-efficient plan or structure will maximize the return on your investment/acquisition. At FML, we provide more than technical tax expertise. We work with our clients not only to identify and manage the tax risks involved in the transaction, but more importantly to identify and capitalize on opportunities.
Should either engagement involve a business with international connections, our affiliation with PrimeGlobal allows us to leverage valuable international capabilities.