M&A Consulting / Private Equity Due Diligence Support
Bring in experienced M&A and financial due diligence support.
Our M&A consultants and financial due diligence experts help maximize value at all stages of the investment lifecycle.
Whether you are buying or selling a business, having the right support is critical.
Execution of a company sale or recapitalization is a full-time job, and it’s always a juggling act for senior management to run their companies while preparing for a sale. And on the buy side of transactions, companies without in-house corporate development/M&A professionals will face various complications during an acquisition that can result in delays, indecision and lost deals. When transactions do close, integration will present finance, accounting, systems and cultural challenges. An 8020 Consulting team of one or more can serve as a dedicated asset to ensure your transaction goes as smoothly as possible.
Some of the things we do:
- Sell-Side Due Diligence Support
- Buy-Side Due Diligence Support
- Purchase Accounting
- Post-Merger Accounting and Systems Integrations
- Valuation Modeling
- Data Room Management
Past M&A and Private Equity Due Diligence Projects
Data Room Architecture and Management
Served as primary architect, manager and gatekeeper of electronic data room (Firmex and RR Donnelley). Built categorical structure of electronic data room. Managed read/write access of user groups (i.e., core deal team, line managers, outside legal counsel, external consultants, Buyer A, Buyer B). Identified and trained trusted team members, providing rights to upload documents into the data room. Cross-referenced data room index with due diligence checklists. Ensured quality control of data room including checking that documents were watermarked confidential, unnecessary metadata deleted and external Excel links removed.
Raising Capital and Acquisition Due Diligence
Provided private equity due diligence support to raise additional capital and acquire another organization for a Green Tech company.
Company Valuations for TV Company
Performed company valuations using discounted cash flow, comparable company and precedent transactions methodologies while working with the business development group on potential acquisitions for a TV company.
Series E Fundraising Diligence Support
Responded to investor’s diligence requests during firm’s Series E fundraising and created in depth analyses of customer acquisition channels, acquisition costs, purchasing habits and pricing sensitivity for an online betting company.
Dynamic Deal Modeling
Constructed dynamic ‘deal model’ enabling simplified LBO and DCF scenario modeling to evaluate potential M&A opportunities for multi-location retailer.
Acquisition Targeting and Evaluation
Evaluated potential acquisition targets in the entertainment industry including preparing valuations and recommendations on which companies were best suited for the potential buyer. Additionally, prepared analyses of the potential returns associated with international licensing agreements and new content acquisition. Analyses included detailed breakouts of projected revenue and EBITDA by channel and returns under various operating assumptions and financing scenarios.
PE Due Diligence and Modeling for Joint Venture
Provided private equity due diligence and financial modeling support for a joint venture transaction ($100M combined revenues) in the Digital Services business. Led due diligence of JV partner including financial audit at trial balance level of granularity.
Post-Merger Accounting Integration
Managed the post-merger accounting integration and finance processes of newly acquired digital entertainment company. Acted as key liaison between the two companies.
Sell-Side Transaction Support
Provided sell-side transaction support for private equity-owned provider of medical practice management software preparing for 2nd-year audit and sale transaction.
Sale Process Management for PE Owner and IBank
Helped manage the sale process at the direction of private equity owner and investment bankers for medical office management company.
Sale Support Analyses
Created analyses in support of the sale including working capital analysis, cash waterfall analysis, budget versus actual analysis, deferred rent analysis, payroll analysis and top-line revenue analysis.
Finance Team Capabilities Assessment
Assessed acquisition target’s finance team capabilities from a people, process and technology standpoint with risk assessments weighted towards financial reporting and budgeting, financial systems and scalability, staffing needs and scalability and internal controls on behalf of a private equity firm with $700M in assets under management.
Ad-Hoc Transaction Analysis
Provided ad-hoc transaction analysis for use in investment decisions – 4-wall analysis and capital expenditure forecasts and prepared long-term financial forecasts to assist in additional bridge financing for an international retailer.
Transaction Support for Digital Entertainment Company
Provided transaction support, including help with diligence requests and ad hoc analyses, creation of pro forma financial statements and development of expense synergies analysis for a digital entertainment company.
Retail 4-Wall Report
Created Retail 4-Wall Report to provide potential buyers with a clean view of Retail store profitability by region.
Working Capital Forecasts
Prepared working capital forecasts for diversified entertainment company for use in purchase and sale agreement. Forecasts included show by show build-ups for all working capital accounts.
M&A Insights and Resources
Get unique perspective from our M&A Due Diligence Consulting team.
Let’s review the anticipatory nature of M&A transactional support that makes this work distinct from traditional corporate FP&A, cover the day-to-day tasks of an analyst facilitating the sale of a company to a prospective buyer and highlight key elements of success that are rarely considered until after the fact.
It’s easy to see what can be improved when looking back with 20/20 hindsight, but hopefully the insights in this article can help you see things clearly well before they become costly, avoidable mistakes.
A carve-out transaction is typically more complex than a complete divestiture and comes with a host of challenges, but when executed properly, it can optimize value opportunities for both seller and buyer.