One of our clients asked for our help in assessing the suitability of a potential acquisition. The target company had done a good selling job, but alarm bells were ringing with us.
We helped our client to prepare a business plan and financial forecasts so that we could approach financiers if a deal was to be struck. As well as this we did some preliminary due diligence, and as we scratched beneath the surface there were clearly some problems with the new business pipeline as well as property issues, and the vendor’s expectations on price just didn’t stack up with the prospects of the business.
This highlights the benefit of having experienced advisers on your side so that deal-breaking issues are identified early on before lots of professional fees are incurred.