Bankers on the GT Securities platform provide comprehensive due diligence services to assist you through M&A and business sale processes.
Our investment bankers and M&A due diligence consultants leverage the firm’s project management, strategy, and investment banking experience to accurately assess the probability of a proposed merger or acquisition, and the value of a target company.
Components of a Successful Due Diligence Process
Our experienced bankers will work with you to develop, complete, and organize a detailed commercial due diligence checklist to enable and ensure an on-time, full-price closing for your next transaction.
Successful due diligence includes:
- Confidentiality Agreement: All prospective parties to a transaction sign confidentiality agreements that prohibit them from disclosing information about the involved companies, their intellectual property, trade, and business secrets, along with the proposed transaction.
- Financial Review: Review and analyze financial statements, including income statements, balance sheets, and cash flow statements, along with business analytics as they relate to customer behavior, patterns, and trends. Importantly, this financial review includes a review of the business plan both from the perspective potential corporate acquirers or private equity firms would have as to the potential acquisition, as well how to attain maximum value as a separate legal entity.
- Market Research: Conduct due diligence as to the target company’s competitive landscape, mergers and acquisitions, market dynamics, and potential new markets to deliver insights around likely future state industry and deals scenarios and how to unlock long-term value post-acquisition.
- Risk Analysis: Due diligence as to relevant areas of deal concern and risk, including legal arrangements, organizational and corporate structure, IT systems, current competitive, market, and deal dynamics, and the positioning of the business.
- Operational Analysis: Review core systems, processes and technologies used to run the business. In addition, we will, as available, utilize advanced analytics to value relevant assets, customer contracts, operating expenses, and other collateral to validate and quantify core areas of value.
- Interviews and Site Visits: As appropriate, our due diligence advisors interview key stakeholders, including management, human resources, customers, suppliers, and services providers, private equity partners, along with visiting target companies’ facilities and locations.
- Valuation Analysis: Building on the above, we arrive at a “spectrum” of business valuations, acquirers, and targets on standalone bases and as combined entities, in best, worst, and expected case scenarios.
- Data Room Creation and Review: We assist in assembling electronic data rooms that contain relevant information about the involved companies and the proposed transaction(s), including financial, strategic, operational, marketing, quality control, and competitive information and intelligence regarding the businesses and their industries. We then review and analyze this data both to identify and quantify the key value drivers, along with the incomplete/missing materials and data needed to be collected to maximize deal value and the likelihood of a transaction closing.
- Reports and Recommendations: Building on the work above and depending on the state and progression of the transaction, our due diligence team will offer recommendations as to the key deal risk factors, how to mitigate them, along with an opinion as to the potential fairness of the proposed transaction, with a focus on potential synergies, best strategic fit, most likely purchase price, risks, and the best path forward for buyer and seller all with the goal of making the best and most informed decisions possible.
