There are many challenges associated with business restructuring transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions.
H2R CPA's Transaction Advisory specialists have extensive experience helping clients navigate these complex situations.
Transaction Advisory Experience
H2R CPA brings experience to our clients who are contemplating an acquisition to grow their business or a divestiture to focus more on their core operations or wealth accumulation.
Our integrated teams of multi-disciplinary and industry-focused professionals can immediately add value to your transaction process by working with you early-on in the deal cycle.
Typical transaction concerns addressed by H2R CPA include the following:
- Reliability of data
- Quality of earnings and cash flows
- Working capital analysis
- Identification of hidden costs and "deal breakers"
- Reasonableness of projections
- Sensitivities surrounding the value drivers (review target organization's revenue streams and funding sources)
- Tax structuring and planning
- Choice of entity
- Assistance with debt financing
Our deal professionals advise not solely on the financial aspects of deals, but across a wide range of operational and commercial activities, such as the impact of regulation or deregulation of an industry, corporate governance policies and structures, intellectual property valuation and effectiveness of management controls. H2R CPA offers a field-proven process that truly spans the entire course of a deal.
Transaction Advisory Services
H2R CPA provides a full range of Transaction Advisory services, including:
- Choice of entity
- Review of fund organizational documents
- Year-end audit
- Preparation of tax returns and Schedule K-1s
- Operating efficiency reviews
- Deal structuring and M&A advisory
- Quality of earnings reviews
- Discounted cash flow preparation and analysis
- Assistance with senior debt financing
- Post-acquisition financial and tax support services
- Post-acquisition tax planning and compliance
- Fund Structure
- Financial Statements
- Tax planning and compliance
- Targeted quality of earnings reviews
- Agreed upon procedure engagements
- GAAP and tax-related issues
- Working capital analysis
- Budgeting and forecasting
- Post-acquisition audit services
Pre-Deal Success Factors
H2R CPA assists clients in the evaluation of potential transactions by focusing on the pre-deal key success factors, as follows:
- Clear definition of strategic intent of the deal
- Timely access to financial and operational information
- Well-organized and managed "Data or Clean Room"
- Open access to both buyer and seller representatives
- Transparent and thorough Letter of Intent
- Well-defined roles and responsibilities between internal and external resources
- Right mix of due diligence - Finance, Tax, Human Resources, Operations and Information Technology
- Consider and document Post-deal value creation opportunities
- Clear hand-offs to Post-deal integration planning
H2R CPA's Due Diligence services provide business owners with assistance in evaluating a business situation from all perspectives before making a business decision. Although it is most commonly performed when buying a business, Due Diligence may be applied to many other situations.
While few business activities are more complex than making an acquisition, a thorough pre-transaction diligence process can help you gauge complexity and risks associated with the pending transaction. Well-planned diligence offers you an important opportunity to assess values for negotiations and to better anticipate the many business issues that generally emerge during the post-acquisition period.
The main goal of the Due Diligence process is to identify any discrepancies between what is reported and what is actually happening. Performed to protect both parties, but primarily the purchaser, Due Diligence uncovers potential liabilities and financial matters to make sure nothing is hidden.
H2R CPA's Due Diligence services include a variety of specific tasks, including:
- Examining all records and documents
- Spending time at the business location, talking to managers, executives, employees.
- Checking sales against customer lists to verify that the business has the customers it says it does
- Looking at potential future plans for expansion, condition of facilities, equipment, furniture and fixtures to verify that they are as reported
- Looking at all documents which might incur liability for the company, including sales agreements, purchase agreements, and liens on assets
- Examining documents relating to any ongoing or potential lawsuits, and recent litigation that has concluded
Meet Our Transaction Advisory Leadership Team
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Closely Held Businesses
High Net Worth Individuals
Fraternal Benefit Societies
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