Our Finance and Accounting Practice conducts financial and accounting reviews that serve as your objective, invaluable "second opinion" on the target company's financial and accounting health. We review and summarize complex financial information and highlight issues that should be top of mind in your thinking. Our constant goal is to empower you with information that is essential to making the most informed investment decisions.
Read more about our Finance and Accounting Practice below.
Our Finance and Accounting professional team has experience in conducting accounting, financial and facility audits of companies in a wide variety of industry sectors. Through a rigorous process of structured questionnaires, interviewing, data compilation and analysis, we garner the degree of disclosure required to make informed, sound business decisions.
All of our team members have or are pursuing either CPA or CFA certification and have served as due diligence specialists for many years, both at Astute Diligence and in prior lives at Big Five accounting firms, premier investment banks, or leading private equity firms.
What We Can Do For You
Our Finance and Accounting Practice team members have in-depth knowledge of the "best practices" and techniques available for financial and accounting due diligence investigations, allowing them to:
- Undertake a thorough review of the target company's financial statements, key financial ratios, accounting records, tax records, operating procedures, and any filings with relevant governmental agencies;
- Identify questionable practices, such as early recognition of revenue, recording revenues that are not genuine or are reversible, increasing income with a one time gain, shifting expenses to a later period, shifting income to a later period, and failing to record and disclose all liabilities;
- Investigate questionable transactions such as complex business arrangements that are not well understood or financial results that appear to be "too good to be true"; and
- Assess the overall financial health of the target company and its future financial prospects.
Questions We Will Answer On Your Behalf
We provide answers to important questions, such as:
- How accurate and reliable are the company's financial statements? Have they engaged in any accounting irregularities or use accounting policies aggressively, incorrectly or opportunistically to "spin" their financials?
- What is the quality of recurring cash flows? What is the quality of the target company's assets? Are there any unknown liabilities that could be dealbreakers? Are there issues that could affect the purchase price or contract conditions?
- What is the quality and reliability of future financial projections? What are the revenue assumptions? Are gross margin projections likely to be accurate? Are projected expenses understated? Overstated? Do cash requirements seem realistic?
- What does the financial picture look like if we conduct some sensitivity analysis and apply various downside "what if" scenarios? How should this analysis affect the price?
Deliverables We Will Create For You
The principal deliverable prepared by the Finance and Accounting Practice is a Financial Assessment, which is an in-depth evaluation of the finances and accounting records of the target company.
Members of our Finance and Accounting Practice will also participate in cross-practice teams that assist with the preparation of a comprehensive Post-Merger Integration Plan for our clients who are contemplating or actively moving forward with merging two entities together.