The customer asked: “can Elliott Davis assist in the financial due diligence of a target to confirm forecast future, value for sale price and identify unrecorded liabilities?”


  • A national group of best-in-class veterinary service providers
  • Offers full-service care to improve outcomes for pet families and providers
  • Client sought help in a potential transaction of 10 veterinary practices

Our Approach

  • Completed financial diligence with an Excel based workbook
  • Prepared quality of earnings analysis by location/clinic and analyzed and commented on historical periods
  • Assessed target’s revenue recognition policies, gross margins by location and methods to recognize costs of sales
  • Prepared proof of revenue and labor with reconciliation against bank and salary and wage expenses
  • Analyzed accounts receivable and payable and property and equipment, along with analysis of debt
  • Evaluated proposed transaction tax structure and implications on buyer/ customer
  • Analyzed nexus footprint and estimated potential tax exposure or tax liabilities
  • Inquired as to target tax reporting practices and procedures, use tax payments, sales tax examinations
  • Performed IT diligence including an assessment of infrastructures, cybersecurity, policies and procedures, regulatory, and overall technology health and maturity for target locations

Customer Impact

  • Received rigorous analysis of financial, operational and tax statements to enable actionable decision making
  • Improved ability to negotiate terms
  • Uncovered potential risks associated with target
  • Obtained an enumerated list of IT risks with proposed and prioritized remediation plans by location
  • Defined a baseline technology ecosystem for each additional target

We Can Help

For more information on how Elliott Davis can assist you and your business, contact a member of our team.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.