Why our four-step process sets you up for success
Are you looking to sell or buy a business? At Venture Corporate Finance, we have developed a four-stage process…
Continue ReadingThe process of due diligence serves numerous functions that benefit both buyers and sellers in a merger or acquisition. Due diligence has several challenges and working through these problems is vital to ensuring that the process and the transaction is performed legally. It is possible to do a large portion of the due diligence yourself, depending on your background, but you should never try to do it solely on your own – Why? Well, There’s an enormous amount deal with.
There are several due diligence types which are predominantly undertaken by experts to give a deep insight into a particular part of a company and creates a detailed representation of its overall health.
Due diligence can last several months depending on the overall size of the company and its activity and the intricacy of business procedures. In general, 30-60 days is normal, but each merger or acquisition is different and dependant on the number of people who are tasked with due diligence.
Both internal and external experts are required at different stages to help evaluate the deal, and both buyer and seller typically pay for their own team of accountants, lawyers, and other consulting and advisory personnel. The external advisors can make both the buyer and the seller aware of the reasoning behind the other party’s point-of-view in case of a conflict.
These experts should include, and not limited to the following:
Completion of the due diligence process with the aid of specialised experts enhances the quality of information available to the decision-makers and helps them ask the right questions and take the right step during the M&A process.
People hire a qualified M&A advisor because they need an expert opinion, and the more experience the expert the more valuable he is to you. When doing due diligence alone, without any assistance, you’re allowing emotions to play a big part, eventually leading to a bad outcome.
Venture Corporate Finance is a middle-market M&A advisory firm for clients planning to sell their businesses, raise capital, restructure, or grow with acquisitions. We provide independent advice and bespoke transaction solutions to meet their specific objectives.
For more information on corporate finance and M&A services, contact Venture Corporate Finance.