As a potential purchaser, it is very important to know that the business you want to buy is the business which you think it is. Most of the time business owners does not depict the real situation and position of business which is most important to know.
As an investor, if you are considering to buy a business or acquiring shares in a business, then due diligence is vital.
Discovering hidden information:
Due diligence has become increasingly important as businesses have globalized. The number and size of deals, mergers and acquisitions have multiplied dramatically, and with a diligence process that is agile and flexible you can gain a significant competitive advantage in an increasingly intense marketplace.
Due diligence is the process of uncovering scenarios that might not be evident from financial statements. For example:
- Who owns the assets?
- Do any undisclosed liabilities exist?
- Are assets adequately protected by way of patent or trademark where relevant?
- Is the vendor involved in a legal dispute?
- How secure are customer relationships?
- If shares are being purchased, does the vendor have a tax compliance history?
Our services include:
- Reviewing customer and supplier contracts
- Researching industry trends
- Reviewing profit history and establishing its relationship to business cashflow
- Understanding why the vendor wants to sell
- Establishing if there is any history of industrial relations
- Establishing whether the vendor has been involved in any past or present legal disputes
- Reviewing supplier trading terms
- Understanding if the vendor has pledged assets as security outside of what is immediately apparent
MHSS being a due diligence specialist firm will give you assurance at the time of purchase of business. Due diligence should be a part of process regardless the size of the purchase transaction.
Our multifaceted team is always ready to provide specialist due diligence services and, in this regard, we are available to provide an independent perspective for your decision-making process.
At MHSS, we have a seasoned team to assist you in the accounting and financial due diligence process, whether this is your first acquisition, or you’ve grown your market share through Merger and acquisitions for years.
We would be delighted to discuss how we can help you, and your group or company. Please get in touch and contact MHSS at [email protected] or alternatively, contact our office directly.