To Maximize Seller Value, Take Control of the Due Diligence Process
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As featured this week on the Association for Corporate Growth (ACG) National Capital Blog, CB&H’s Scott Moss, Director of the Firm’s Transaction Advisory Services group, outlines the value of sell-side due diligence to both sellers and buyers by assessing a company’s earnings power, ensuring compliance with complex industry-related accounting rules, and preparing the seller for the rigors associated with buy side due diligence.
The sell-side due diligence process enables prospective sellers to examine their businesses from the perspective of a potential buyer. Sellers benefit from a sell-side due diligence process in their ability to identify and address issues that could impact a transaction before they are uncovered by a buyer’s due diligence team. Additionally, this process provides potential buyers access to more credible financial information that can reduce the amount of time needed to successfully close a transaction.
While there continue to be changes in the broader economy, the critical aspects of selling a company remain relatively unchanged. In order to assess a company’s true profitability, interested buyers will typically request three years of historical financial statements to better assess a company’s operating profitability, but there are a number of business situations that can interfere with a buyer’s ability to make that determination. Understanding these issues outlined below and preparing an appropriate response to potential questions in advance can help you achieve a successful sale.
Click here to read the rest of the article online at the ACG blog.
To learn more about Cherry, Bekaert & Holland’s Transaction Advisory Services group and their extensive experience providing due diligence engagements, please contact Scott Moss at smoss@cbh.com or visit us at www.cbh.com/tas.
