By Lathrop Smith, CFA, Transaction Advisory Services Partner

When we deliver our written report at the end of a three- to four-week due diligence engagement, our client will have already received our key findings throughout the engagement in real time.

Our dedicated transaction advisory team prides itself on meeting deadlines and keeping clients informed throughout the engagement, which allows our clients to efficiently turn on other diligence providers (e.g., legal, IT, S&M) or go pencils down.

The various stages and feedback points during our due diligence engagements include:

    • Initial data delivery from target,
    • Initial analysis of target’s monthly reported results,
    • Virtual site visit,
    • Post-site visit observations and conclusions,
    • Quality of earnings analysis and adjusted P&L and balance sheet,
    • Federal and state income tax and sales & use tax analysis,
    • Net working capital peg analysis and strategic advice,
    • Assistance with key financial provisions of the purchase agreement, and
    • Final reporting and observations.

Not only do we provide constant feedback, but we also encourage our clients to listen in on all management meetings and virtual site visits so they can hear first-hand our discussion with the management team.  Providing our clients real-time information throughout the financial diligence process allows them to more efficiently manage their diligence expenses, and even more importantly, build trust and rapport with target management at the beginning of the partnership.