Due Diligence

At KatzAbosch, while we acknowledge that culture and “fit” are of primary importance, we also understand that the success or failure of a business acquisition can come down to whether or not proper financial and accounting due diligence services were conducted.

In assisting our clients with an acquisition, our due diligence services focus not just on analyzing the target company’s financial statements but also on uncovering relevant information beyond them. We also understand that, in performing due diligence, time is of the absolute essence.

Due Diligence Services

Our comprehensive process meticulously examines the target company’s financial aspects, providing buyers and sellers with a transparent view of the investment or asset in question. Whether you’re a potential buyer seeking to understand the actual value of your prospective investment or a seller aiming to validate and enhance your company’s worth before listing it for sale, our services cater to both needs. We assess the authenticity and sustainability of the reported earnings and cash flows, making essential adjustments to depict their genuine value. Our dedicated team thoroughly reviews all financial elements, paving the way for successful transactions and value enhancement.

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If you have questions or need assistance, please fill out the form and a KatzAbosch representative will get back to you shortly.

Due Diligence Advisory Services

Beyond audits, KatzAbosch offers due diligence advisory services, guiding businesses through the intricate process of mergers and acquisitions. Our advisory services help you make sure that every decision is informed and strategic, optimizing the company’s structure and enhancing its value. We collaborate closely with legal professionals and other advisors to streamline the process, providing strategic exit-planning advice and optimizing deal structures for cash flow and tax implications.

M&A Due Diligence Services

Buy-side due diligence services include:

Evaluation of the quality and sustainability of the target company’s reported earnings and cash flow by determining the appropriate “normalization” adjustments.
Analysis of the quality of assets to be acquired; for example:
- Have receivables been appropriately reduced for probable uncollectible amounts?
- Has inventory been reduced as needed for obsolete or unsellable items?
- Does property, plant, and equipment include any items that should be written down due to value impairments?
Assessment of the reasonableness of the target company’s business forecasts
Addressing key financial reporting and tax risks in purchase agreement negotiations
Valuation services related to the target company’s intangible assets
Advice regarding the proper application of purchase accounting under generally accepted accounting principles
Evaluation of post-closing purchase price adjustments, such as working capital “true-ups”
Post-closing implementation and consolidation

Sell-side due diligence services include:

One to five years in advance of a sale, we provide consultation regarding the proper structuring of a company and value enhancement strategies, along with exit planning for tax, investment, and estate purposes
Analysis of deal structure for cash flow and tax impacts, including advice for the best result
Evaluation of offers
Working with brokers, lawyers, or other advisors to manage the data room and manage responses and flow of data to the prospective buyer
Assistance with preparing forecasts, projections, and normalization adjustments
Assistance with preparing responses and schedules based on buyer requests
Working with lawyers and advisors to review and negotiate the terms of the purchase agreement, including working capital requirements, management representation, and warranties
Referrals to wealth management advisors for post-transaction investment

“We have 30 people on our board, but a small set of people in the control environment. KatzAbosch asks important questions about changes in roles or governance that have helped us build a solid model for risk management.”

Sarah Trees, Executive Director of London Towne Property Owners Association

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