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 below.
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.
