Acquisition & Investment Due Diligence

Financial Due Diligence For The Purpose of a Company Acquisition or Investment

When you plan to acquire a company, merge with another company, or simply invest as a partner in an existing business, the financial stakes involved can be very substantial.

It is critical to perform financial due diligence so that you are sure that the intrinsic value of the company and its business is worth the price you are paying for it.

However, unlike buying a product, buying a business is a complex task which requires the involvement of an experienced financial specialist.

At Orr Forensic in Orange County, we have advanced expertise and years of experience in conducting financial due diligence to enable profitable company acquisitions for our clients.

Accounting and Financial Due Diligence by Orr Forensic

Our team of experts will typically perform the following activities as part of your financial due diligence exercise before you buy a business:

• Investigative analysis of the company’s audited financial statements
• Evaluating the authenticity of the quarterly or annual historical financial records and information furnished by the company
• Obtaining and analyzing publicly available financial information about the company
• Scrutinizing the audit work papers
• Interviews with the company’s external auditors as well as internal financial team
• Assessing the critical financial issues the business may be facing
• Identifying and evaluating the key drivers behind cash flows and maintainable profits
• Objectively determining the financial risks and transaction’s potential deal breakers, if any

Financial Analysis

At Orr Forensic, we are committed to protecting our clients’ financial interests by deep diving into the target company’s complex web of financial data and figures, and analyzing and presenting their true financial picture.

The financial analysis process can yield key observations about the company’s actual operating profits, while accounting for reserves, one-off non-recurring transactions, and one-time activities.

We will also provide crucial insights about your post-transaction requirements of net working capital. We will enlighten our clients on the target company’s debt-like exposures, capital expenditure trends, and cash flows.

Our forensic accounting and financial due diligence experts will identify the true value that the transaction will produce, including an objective analysis of:

• Actual operating earnings.
• Projected future financial figures.
• Working capital requirements.
• Capital expenditure.
• Cash flow generators.
• Contingent liabilities and other financial commitments or personal debts that could endanger the future financial performance of the target company.
• Understanding the inventory position and future requirements.
• A walkthrough of the complete trial balance, which covers questions on any fluctuations of the cash balances on specific accounts, detailed breakdown of various items within accounts, and assessing the justification for the particular accounting method used.

Close Engagement with Client at Every Step

At Orr Forensic, we maintain close cooperation and communication with the client and their professional advisers at every step of the financial due diligence process. We are driven to exceed the expectations of our clients by providing high quality deliverables to help them make the most effective investment decisions.