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diligence

 

Before buying or selling a business, Monroy Petersen can help you analyze and validate critical information to assure that the proposed transaction is executed at a fair price and under appropriate terms. We devote particular attention to identifying and quantifying financial, operational, and legal risks involved in the proposed transaction that may affect your decision to move forward in the process.

Why should I do a due diligence?

As a buyer, you will assume certain business and financial risks that may not be completely eliminated by a purchase agreement. However, you can understand these risks, and take the necessary steps to mitigate them, by obtaining detailed knowledge of the target company before closing the transaction. Performing a comprehensive due diligence will help you not only to control these risks, but also to confirm that the price you offered for the business is in line with your understanding and expectations.

As a seller, you may not be aware of the full value of your business, or you may have difficulty convincing a buyer of the synergies and future opportunities created by the proposed transaction. Performing a detailed due diligence may help you to enhance the value of your business and can improve your leverage during the negotiations process.

Our Process

 

Because each deal is different and you may have specifics concerns about the transaction, we tailor our due diligence services according to your needs. We are independent of the transaction; therefore, we can provide you with an objective perspective of the current and potential opportunities and risks. Our general examination and review includes the following areas:

 

Documents:

 

  • Corporate Documents

  • Financial Statements

  • Engineering Reports

  • Market Studies

  • Key Intangibles

  • Key Tangibles

  • Contracts

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Key Information From the Company's Management:

 

  • Governance Information

  • Strategic Positioning

  • Financial Planning

  • Litigation Matters

 

Key Information From Outside Sources:

 

  • Market Research

  • Capital Structure

  • Lien Search

  • Creditor Check

  • Patent & Trademark Search

  • Certificates of Good Standing

  • Title Documents

  • Real Property Appraisals

 

We can conduct a full due diligence process or focus on a specific area such as finance and accounting, operations, markets and competition, and contingencies and liabilities.

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