Before buying or investing in a business, it is important to carry out due diligence to gain an in-depth understand of the business, confirm all the facts and identify risks so you can manage them.
Financial due diligence
Our core business is accounting – pretty handy, we think, for providing comprehensive financial due diligence.
We’ll thoroughly evaluate the seller’s finances. You’ll get reports on its current and historical financial position, as well as a review of future prospects and reliability of financial forecasts.
We can investigate any large liabilities hidden in the accounts. And we’ll have a good look at the overall tax position.
Not least, we can advise you on whether the proposed purchase price is too high and if required, help restructure a deal that suits you better.
Legal due diligence
We can introduce you to lawyers who know the sector. Legal due diligence ensures that the price you pay is ‘fair’ and takes into account any liabilities and potential hidden downsides that might arise after the sale.
However, we won’t leave you to do this on your own. We’ll support you and work alongside the lawyers, not only to structure warranties, but also to help with tax and other potential areas of risk.
Warranties made by the vendor are a key part of any sale agreement. They cover both commercial and tax areas. They alert you to potential risks and allow us to help you manage those risks. Warranties need to be structured and worded carefully to enable you to claim compensation for any loss.
We were very impressed with the professionalism shown by Moore Kingston Smith throughout the due diligence process and the quality of the final report given. The team’s input into the SPA and the general handholding advice provided throughout the process proved invaluable. The team worked tirelessly to ensure our objectives were met and were a pleasure to work with.