Due Diligence
Are you about to decide whether or not to take over a business, or planning to sell your own business soon? In almost every acquisition process, either purchase or sale, the time inevitably comes for the buyer to investigate the company they are looking to acquire. During this investigation (due diligence), the object of the sale is examined more closely to make sure there are no hidden issues. Our broad expertise in due diligence ensures that you will not encounter any surprises, either now or in the future. We can also advise you on how to incorporate these risks into the purchase agreement.
What is the significance of due diligence?
When acquiring a company, how can you ensure you’re not buying a pig in a poke and being saddled with difficulties that you will later have to spend time (and possibly money) solving? You can avoid this by meticulously investigating the company you’re taking over, either yourself or done by a third party. This type of investigation is called due diligence and is an in-depth examination of the company to be acquired, aimed at providing a solid foundation for the decisions to be made during the acquisition process, and identifying any risks.
Due diligence clarifies the strengths and weaknesses of the company you’re thinking of buying, or your own company for that matter. This could affect the purchase price, or the negotiations concerning guarantees or indemnities. At Baker Tilly, we offer you due diligence support in the following areas:
Financial due diligence
Tax due diligence
Legal due diligence
HR due diligence
IT due diligence
Due diligence from the perspective of various disciplines
Are you about to conduct a due diligence investigation and are looking for a partner who can support you in several areas? Whether your due diligence issue is in the financial, fiscal, legal, HR or IT field, our committed team of corporate finance specialists put their skills to work to bring even the less obvious risks into sharp relief.
Due diligence for the buyer or seller
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You are planning to take over a company. It’s going to require a lot of your time and energy, and the last thing you need to be worrying about is unpleasant issues that may suddenly come to light after the sale. We can put your mind at rest by ensuring that you receive a trustworthy overview, including any potential risks, when you take over an organisation. What sets us apart is our ability to shed light on risks from various perspectives based on our multidisciplinary approach, and to quantify these risks and proactively advise you about how to incorporate them into the purchase agreement.
We consult with you to determine which work we’ll carry out, based on specific areas of concern important to you, together with any relevant aspects that we identify. We’ll stay in close contact throughout the investigation, and report on our findings along the way. By doing so, we can adjust the course together and you can let us know whether there are any parts of the investigation that warrant a closer look.
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You’re thinking of selling your business, either now or in due course. On the one hand, you want things to go quickly and smoothly; on the other, you want to get the most out of the sale. A vendor due diligence exercise will reveal the risks of a sale, so that you can deal with and resolve these and any other issues in good time. The sales process will be faster and more efficient, and the proceeds from the sale are often higher.
Vendor due diligence speeds up the acquisition process because all the information has been gathered, collated and commented on. This contributes to better acquisition terms and reduces the number of warranties and indemnities needed. Interested in finding out how a vendor due diligence investigation could benefit your business? Feel free to contact Lorijn van Leersum. Read about the other ways we can help you with selling your business.
2022 transaction overview
In 2022, we advised clients on 153 assignments, ranging from acquisitions and due diligence investigations to valuations and financing options. The total value of the acquisitions came to €233 million, and the average transaction value was €6 million. Our clients operate in a wide range of industries, which we’ve listed below. You can read about these clients in the references, or get in touch with us so that we can discuss what we can do for you.
