Due Diligence Investigations
Dduring the Merger and Acquisition process the Firm assists clients by performing due diligence investigations, which include a detailed investigatory audit, which includes ascertaining the reliability of a material representation made by the management of the target; review of all significant contracts, leases, mortgages, notes and other contractual obligations of the target; and, assessing the impact on the consolidated entity; review of historic financial statements and tax return filings to ascertain the reliability of the historic financial statements and ascertain what, if any, savings or eliminations of duplicative overhead issues can be achieved in the combination of the businesses.
Forecasts and Projections
The acquisition process often leads to the preparation or review of various forecasts, income and expense projections, and cash flow projections. These projections will provide the basis for formation of strategic business plans for the combined entities, provide the basis for the investment capital provider to see a return on investment, provide a basis for a debt structure, and prove that the purchase price being paid for the target is reasonable.
Tax Planning and Structure The structure of the business acquisition is often dictated by an analysis of a number of tax considerations, which must be carefully considered and analyzed.
Business Valuation The valuation of the target business is a critical function of the merger and acquisition process. The valuation of the business must make sense for the deal to culminate in a success. Whether the transaction is financed with internal funds, new or additional capital infusions, new debt or a combination thereof, the business valuation must make sense in regards to return on investment and alternative investment options, with risk/reward considerations factored in.
Financing The transaction, whether it be a merger or an acquisition will typically require financing in the form of capital infusions or new debt instruments. The structure of the transaction and assistance in obtaining credit lines, long-term notes and investment capital is another essential part of the process.
If you are looking for an accounting firm to help you with any of your accounting needs, please contact the expert CPA firm Getzel Schiff & Pesce at 516-692-8500 for a free phone consultation. Getzel Schiff & Pesce, LLP's main office is located in Woodbury, New York on Long Island and our other offices are located in New York City, NY and Scottsdale, Arizona.
