At KatzAbosch, while we acknowledge that culture and “fit” are of a 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 focuses not just on analyzing the target company’s financial statements, but also on uncovering relevant information behind the financial statements. We also understand that, in performing due diligence, time is of the absolute essence.

Due Diligence Audit Services

Our comprehensive audit process is designed to meticulously examine the target company’s financial facets, offering buyers and sellers 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 ensures that all financial elements are thoroughly reviewed, paving the way for successful transactions and value enhancements.

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 ensure that every decision made is informed and strategic, optimizing the company structure and enhancing its value. We collaborate closely with legal professionals and other advisors to streamline the process, providing strategic exit planning advice and ensuring that deal structures are optimized for both cash flow and tax implications.

M&A Due Diligence Services

Our Buy Side Due Diligence Services Can Include:

Evaluation of the quality and sustainability of the target company’s reported earnings and cash flow, through 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 target company business forecasts
Addressing of key financial reporting and tax risks in purchase agreement negotiations
Valuation services related to target company intangible assets
Advice regarding 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
Other services, as needed

Our Sell Side Due Diligence Services Can Include:

In the 1-5 years in advance of a sale, we can 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 and lawyers or other advisors to manage the data room and manage responses and flow of data to the prospective buyer
Assistance with preparing forecasts and projections and normalization adjustments
Assistance with preparing responses and schedules based upon buyer requests
Working with lawyers and advisors to review and negotiate the terms of the purchase agreement, including working capital requirements and management representation and warranties
Referrals to wealth management advisors for post transaction investment
Other services, as needed

Due Diligence Services Frequently Asked Questions

What do KatzAbosch’s due diligence services encompass?

KatzAbosch offers a holistic due diligence approach, delving deep into a company’s financial statements and revealing the essential details behind them. Our goal is to ensure that every business acquisition is built on a foundation of accurate financial understanding.

Could you elaborate on the financial due diligence you offer?

Our financial due diligence dives deep into a company’s financial landscape. We assess the true value of assets, from receivables to inventory and even tangible assets. Furthermore, we play a pivotal role in navigating potential financial and tax pitfalls during the negotiation phase of purchase agreements.

What can I expect from a KatzAbosch due diligence audit?

A KatzAbosch due diligence audit is a comprehensive assessment of a company’s financial well-being and any associated risks. We meticulously analyze earnings, cash flows, and business forecasts, ensuring that all financial elements are transparent and understood, paving the way for a successful acquisition.

How do your M&A due diligence services aid in the buying process?

Our M&A due diligence services are tailored to provide clients with clarity during acquisitions. We evaluate asset quality, offer insights on the valuation of intangible assets of the target company, and guide clients through post-acquisition financial adjustments. Our collaborative approach ensures seamless interactions with brokers, legal teams, and other essential advisors.

What assistance do sellers receive from your due diligence advisory?

For sellers, our due diligence advisory offers guidance on optimizing company structure and enhancing its value. We provide strategic exit planning advice, assist with financial projections, and ensure that deal structures are optimized for both cash flow and tax implications. Our team collaborates closely with legal professionals and other advisors to streamline the selling process.

Due Diligence Services