Buy-Side Due Diligence

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Focus and clarity in a fast-paced deal environment

It’s critical you fully understand your target acquisition, including its past performance and future outlook. With experts advising on hundreds of deals per year, our due diligence process will not only help you validate the accuracy of financial information but will also uncover the story behind the numbers.

Our thorough approach includes analyzing the company’s historical and forecasted financial data, tax matters, IT environment, operations, and market position — all to help you mitigate risk, avoid surprises, support your valuation, and accelerate time to close. If it affects the transaction and integration success, we’ll evaluate how, and by how much.

Transactions involve more than facts and numbers. They’re about relationships. Our team is sensitive to this and views ourselves as an extension of your team and works to foster the relationships that you have built with the company. We collaborate to understand the accounting, data, and other issues with a common goal of getting the deal done as efficiently and effectively as possible.

A calculated risk can be transformative

Acquiring a new business can be risky, but the potential growth and new opportunities can be transformative. Our buy-side due diligence services include:

Financial due diligence. Are you concerned with the accuracy of the company’s financial information, including the accounting, data, and reported EBITDA? We dig deep to find the story behind the numbers, assess the company’s historical financial performance and condition, identify key drivers and trends, and uncover weaknesses and future growth opportunities. Our tax specialists will also help structure the transaction to minimize taxes, as well as help ensure the appropriate elections are made to minimize your potential tax exposure.

Operational due diligence. Are your target’s operations full of risk, or opportunity? Operational due diligence is critical for integration success. As the buyer, you want a clear picture of existing operations and opportunities for future accomplishments. Our operational due diligence experts analyze the target’s current performance, EBITDA potential, and integration efforts, so you realize a higher ROI and achieve a more impactful, tangible output.

Commercial due diligence. Do you fully understand the key trends, competitive landscape, and EBITDA growth opportunities of your target? We’ll examine recent business performance and provide valuable insights into a target’s projected future earnings. Our thorough approach includes analyzing the target’s financial forecasts, operations, and market position.

IT due diligence. Does the target company’s IT system provide complete information, and is it ready for future growth? We’ll help you make an informed purchase with a clear picture of the gaps you’re inheriting, the technology and compliance risks you’re susceptible to, and the costs related to existing technology and projects, as well as needed improvements.

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Critical due diligence considerations

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Buy-Side Due Diligence Thought Leadership

The strategic role of the CFO in M&A

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Tax diligence and planning: Don’t leave money on the table or risk a deal collapse

Tax readiness is an often-overlooked aspect of preparing for an exit, yet the consequences can be significant. Why leave money on the table or risk the deal’s collapse?

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Business combinations: Top challenges for midmarket CFOs

Is a merger or acquisition likely in your future? To ensure a smooth post-close business transition, work with the seller to bring in technical accounting and tax advisors early.

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COVID-19 is shaping M&A: Here’s what private equity needs to know

The COVID-19 pandemic has slowed private equity deals, but adaptable buyers and sellers are still transacting. Add-ons and strategic acquisitions are driving the buy side, and good, quality targets are in high demand. Our experts break down deal trends and considerations to reduce risk and get ahead.

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Our clients say

I really value our relationship with Plante Moran, and would overwhelmingly recommend them. The team’s responsiveness to our diligence needs is unmatched, and we can count on them to be on the ground with the target quickly.

The team’s financial due diligence expertise is invaluable. I appreciate that they don’t force us to fit into a check-the-box, standard scope of work, but instead work with me to figure out exactly what we need for our investment team. They conduct an extensive review, are always prepared, asking thoughtful questions of management, and build relationships with our portfolio company management teams and our investment teams. We always receive a comprehensive report, which gives our team a clear picture of the acquisition target. The level of detail the team provides is unmatched. We can count on Plante Moran to provide an accurate picture of where the target has performed historically and where the key value drivers are. They truly understand our financial due diligence process and provide thoughtful advice during our decision-making process.

Their high level of partner involvement is very unique and one of the main reasons why we highly recommend them.

Reid Parmelee Transaction Services Analyst, Prospect Capital Management

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Buy side due diligence for an expanding food processor

Financial, tax, and IT due diligence leads to a significant reduction in purchase price and aides in strategic growth decisions.

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IT due diligence for private equity group

Due diligence of IT processes and ERP systems aids private equity group’s acquisition of a $38 million software and accessories distributor.

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Trusted and thorough insights

When you partner with us, we’ll not only provide solutions that showcase our expertise, but we’ll do it in a relatable way. We’re known for asking thoughtful questions and respectfully engaging with management. Whether this is a complex, billion-dollar transaction or a straightforward small deal, we’re with you every step of the way.

In the words of our transaction services leader Matt Petrucci, “When you’re looking at a transaction, you need a complete picture of your acquisition target. Our team digs into the details to help you make the decision to proceed, renegotiate or restructure, or withdraw from the transaction.”