M&A due diligence checklistÂ
Mergers and acquisitions transform businesses, but success hinges on thorough preparation during the due diligence phase. Explore the 8 essential categories of documentation you need for M&A transactions.
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Due Diligence
Minimize risks and maximize value with in-depth evaluation of potential business deals.
Our Due Diligence Services are designed to help buyers identify areas that could affect deal negotiations. Whether you are a strategic buyer, a private equity firm or a capital provider, we help you analyze risks and support your decision-making.
Due Diligence Services
Successful mergers and acquisitions require buyers to clearly understand both opportunities and risks. Due diligence involves a thorough analysis of financial statements and earnings quality, and identifying any risks, anomalies or non-recurring items that could affect the valuation and success of a transaction. Proper due diligence helps buyers structure transactions strategically; without this, you may not see the full picture.
The appropriate due diligence advisory services team can assist you in identifying exactly what you’re buying. At BPM, we help you uncover the value and inherent risks of your transaction. Our Firm also assesses the quality of assets, historical and projected earnings and cash flows. We identify opportunities, as well as hidden costs, commitments and contingencies so you can maximize enterprise value. Finally, we handle the heavy lifting, allowing you to concentrate on managing your business.
Related Insights
Due Diligence Services that produce critical insights
BPM primarily serves lower-middle-market and middle-market companies – from boutique private equity firms to global investment banks – across all industries engaged in M&A, sales, spin-offs, carve-outs, refinancing and restructuring. Specifically, we focus on:
Financial Due Diligence
Our comprehensive Financial Due Diligence Services and detailed Quality of Earnings (QoE) reports provide critical insights into a company’s financial health and include a thorough analysis of financial statements and earnings quality.
BPM’s QoE Services provide buyers with an overview of a company’s financial performance; a detailed analysis of the company’s revenue, expenses, and normalized earnings; and summarizes any findings or recommendations from that analysis as part of a thorough due-diligence process. Our dedicated, fully focused team can start your QoE immediately, working on deal time to help ensure you meet critical deadlines.
Our financial due diligence services include:
- Assessing the quality of earnings, cash flow, working capital and overall financial reporting.
- Analyzing historical and projected performance and KPIs.
- Supporting any financial and tax-related M&A tasks.
Tax Due Diligence
With a focus on optimizing tax outcomes and minimizing liabilities, we conduct thorough tax due diligence, design transaction structures and ensure compliance with tax regulations. Our services include:
- Understand the impact of risks and opportunities on the transaction and its price.
- Identify historical tax risks within the business.
- Choose the right representations and warranties in the sale and purchase agreement.
IT and Security Due Diligence
IT due diligence analyzes technological strengths and weaknesses to identify potential synergies and cost-saving opportunities. In contrast, security due diligence evaluates all areas of cybersecurity and digital assets to identify potential risks, vulnerabilities and liabilities. Our services include:
- Identifying weaknesses and breach-related risks through penetration testing.
- Reviewing cybersecurity policies, procedures, standards and practices to protect information and comply with regulations.
- Testing controls protecting IP or data regulated by the payment card industry (PCI), Health Insurance Portability and Accountability Act (HIPAA), Gramm–Leach–Bliley Act (GLBA), etc.
Human Resources Due Diligence
HR due diligence examines organizational and compensation structures, HR practices and policies, turnover trends and more. This evaluation allows you to analyze leadership and management, identify gaps and assess the overall people environment to align with strategic and operational objectives. Our services include:
- Assessing the people environment to support strategic and operational objectives.
- Evaluating leadership and management and identifying gaps.
- Auditing HR compliance, policies, practices, strengths, liabilities and benefits.
Why BPM for Due Diligence Services?
BPM’s Due Diligence Services team provides customized support and innovative solutions tailored to the unique needs of your business transaction. Whether you’re buying a family-owned business or a publicly traded company, our comprehensive, cross-functional and full-service approach to due diligence provides critical insights into a company’s financial health.
Our Due Diligence Advisory Services team offers extensive knowledge based on decades of experience managing both buy- and sell-side deals. As a result, we deeply understand the risks and opportunities inherent in every deal. Whether you are a strategic buyer, a private equity firm or a capital provider, we can provide due diligence services to flag potential issues, mitigate risks and support your decision-making across a wide range of transactions.
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Looking for a team who understands where you’re headed and how to help you get there? Whether you’re building something new, managing growth or preserving success, let’s talk.