Due diligence

Due diligence

Buying a business is littered with pitfalls and risks. It is essential that you understand what you are investing in and where things can go wrong. To this end we will help you understand the financial risks associated with an acquisition and possible mitigating strategies.

Crest follows a risk-based approach in performing a financial due diligence by focussing the review on the following key risk areas:

  • Transaction risks
    These risks relate to anything that could potentially affect the proposed transaction, such as the valuation of the business, the potential warranties that need to be put in place, and any conditions precedent that may need to be included in the sale and purchase agreement.
  • Operational risks
    These risks relate to the operational sustainability and growth of the business. In assessing these risks we would assess the nature of the products and services, customers, suppliers, history of the business, operational controls and any other operational risks.
  • Financial risks
    These risks relate to the financial statements and management accounts are a fair reflection of the results and financial position of the business. Are they a fair reflection of the results and financial position of the business and have accounting policies and practices been appropriately implemented.

Why Crest Capital…

  • Collectively our Team has performed hundreds of due diligence assignments on a wide variety of businesses ranging from single location, privately held businesses to multi-national corporates listed on international stock exchanges.
  • As a result of following a risk-based approach, each due diligence is tailored to focus on the key issues and critical success factors of the target business.
  • We are able to scope each assignment based on your specific needs ranging from a limited scope, high level review focussing on specific areas to a detailed, full scope due diligence which includes an operational and tax review..
  • We have performed due diligence assignments on a broad spectrum of businesses in almost every economic sector.
  • Our high quality reports are an invaluable tool when discussing funding with banks and other funders or considering new investments with your own board.
  • Using a third party to perform the due diligence assignment enables you to get an independent view of the risks of the transaction and ensures that you avoid potential deal fever and later surprises.
  • “Due to our wealth of business experience we have the ability to comment at a high level on management’s ability to deliver on the stated business plan.”