Leaders of a firm asked Elliott Davis: “Can you help us get ahead of potential deal issues to increase the likelihood of a successful sale?”
Context
- Customer hired investment banker to go to market
- Not equipped for conversations with buyers about financial and tax matters
- Issues were identified during buy-side diligence that killed the deal, and the company was taken off-market
- Asked us to get them better prepared for a future sales process and the rigors of buy-side due diligence
- Received unsolicited letter of intent (LOI)
Our Approach
- Meet with leadership to review state of business to understand strengths and weaknesses
- Perform initial assessment of accounting policies, historical working capital under GAAP, and best practices
- Conduct sell-side financial and tax due diligence to “get house in order” and instill “go-to-market confidence”
- Identify most advantageous tax structure to owners and complete business valuation to minimize tax burden
Our Impact
- Fast-tracked successful close
- Got ahead of potential buyer concerns and implemented best practices
- Allowed leadership to spend more time focused on the business
- Defended sell-side quality of earnings (QoE) and tax exposures to negate buyer purchase price reductions and post-close claw-backs
- Collaborated with seller’s attorneys on favorable key deal points, tax matters, and drafting of pre-closing deliverables
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.
