Two men shaking hands across table

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.

    Data analytics can help you achieve your goals

    Published 03/06/2023

    Every organization is looking for a way to achieve their goals more quickly and efficiently. However, most organizations are not harnessing the tool that can help them do just that – data analytics. Data analytics is the processes of...

    Indiana Pass-through Entity Tax (PTET) Update 

    Published 02/27/2023

    The Tax Cuts and Jobs Act (TCJA), passed in 2017, limited taxpayers to a $10,000 maximum deduction of state and local taxes for Federal tax purposes. This ‘SALT limitation,’ as it would be widely known, impacted taxpayers that itemize...

    NFP News: Indiana Not-For-Profit Tax Changes for 2023

    Published 02/09/2023

    Beginning January 1, 2023, not-for-profit organizations will be required to utilize Form NP-1, Nonprofit Sales Tax Exemptions Certificates, instead of Form ST-105. The new Form NP-1 will only be available through the Indiana Department of...

Stay in the know.

Get our newsletter delivered straight to your inbox.