Frequently Asked Questions

In our experience, the process of buying or selling a business is very involved and success is typically driven through preparation.  The ability to keep all parties focused on key issues is much easier with a clear and concise analysis presenting the historical operating results and detailed support of any appropriate adjustments (one-time, non-recurring, run-rate, pro forma, etc.) which are aligned with the company's story and potential.  We see unprepared owners and business leaders waste time and lose momentum by having to research trend questions or defend unsupported adjustments, which can lead to frustration and failed processes.  By engaging an experienced partner to support this part of the process, owners and leaders can focus on telling the story of the company and highlighting the trends and potential that attracted buyers in the first place.  

While investment bankers develop models that include historical operating results and adjustments to normalize those results, they are typically focused on presenting the company's future opportunities and managing the full transaction process with a significant number of moving pieces (e.g., buyers and their requests, changing trends in customers, employees and suppliers, as well as shepherding responses for the various diligence efforts such as financial, tax, operational, legal, environmental, regulatory, etc.).  We support the investment banker by preparing reasonable and defensible financial and tax analyses that the investment banker utilizes as the basis for their model and also serve as a first line of defense in handling financial and accounting questions.  This allows the bankers and leadership team to focus on the key transaction points and maintain momentum in the process. 

While certain assets or liabilities will not remain with the company after an asset deal, the underlying trends such as changes in the customer base, payor relationships, employee base and other factors can significantly affect the acquired operations.  These changes can be masked by a company's approach to financial reporting or the timing of the changes.  Certain diligence procedures can provide insight and comfort around the trends in a business to limit surprises.