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Know Your Worth, Do Your Due Diligence

Are you contemplating acquiring a business? Or perhaps contemplating taking your business to market for a potential sale? The MCM CPAs & Advisors Transaction Advisory Services Team can help you determine if a transaction is a good fit. Our team applies deep industry knowledge and expertise, while taking both a qualitative and quantitative approach to identifying risks and opportunities to help our clients make the most informed decisions before proceeding with a transaction.

Overview

We begin each engagement by consulting with your team. This may include your internal management team and external advisors. The kick-off meeting sets the scope, timing and nature of our due diligence analysis. While each business is unique, our analysis typically includes the following critical procedures:

Quality of Earnings Analysis
Calculation of Adjusted EBITDA
Analysis of Balance Sheet and Income Statement
Analysis of Monthly Net Working Capital
Proof of Cash Analysis

 

 

 

What are the benefits of Due Diligence and Quality of Earnings

A thorough financial diligence process goes a long way in ensuring a smooth transaction. When used on the buy-side of a transaction, this analysis validates factors that impact deal value, such as recurring cash flows, EBITDA and net working capital. On the sell-side, we perform similar analysis, but with the objective of providing transparency over financial reporting. By proactively identifying areas of importance in our sell-side analysis, we strive to limit buy-side inquiries and ensure a smooth transaction process.

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