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?”
Context
- 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.
“Elliott Davis" is the brand name under which Elliott Davis, LLC (doing business in North Carolina and D.C. as Elliott Davis, PLLC) and Elliott Davis Advisory, LLC and its subsidiary entities provide professional services. Elliott Davis, LLC and Elliott Davis Advisory, LLC and its subsidiary entities practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Elliott Davis, LLC is a licensed independent CPA firm that provides attest services to its customers. Elliott Davis Advisory, LLC and its subsidiary entities provide tax and business consulting services to their customers. Elliott Davis Advisory, LLC and its subsidiary entities are not licensed CPA firms. The entities falling under the Elliott Davis brand are each individual firms that are separate legal and independently owned entities and are not responsible or liable for the services and/or products provided by any other entity providing services and/or products under the Elliott Davis brand. Our use of the terms “our firm” and “we” and “us” and terms of similar import, denote the alternative practice structure conducted by Elliott Davis, LLC and Elliott Davis Advisory, LLC.
