Due diligence

When it comes time to carry out your merger, acquisition or divestiture, you want to be sure your transaction will be a success. This means:

  • evaluating all your financial, tax and legal risks
  • understanding the impact your transaction will have on your people
  • knowing the true cost of compliance
  • assessing the fair market value of assets and liabilities
  • confirming that the business plan is achievable with the existing operational facilities

Teaming up with our financial due diligence team, we offer you a full menu of services to choose from. So you’ll get fully researched, integrated views of all aspects of the transaction. We like to call this our business due diligence service.

With our business due diligence, we’ll analyse and validate all your financial, tax, operational, HR and legal assumptions, and we’ll make sure there are no black-holes by quantifying the biggest risks associated with your target or transaction.

Financial due diligence in Vietnam

Financial due diligence is about providing you with peace of mind as a corporate or financial buyer, by analysing and validating all the financial, commercial, operational and strategic assumptions being made.

Any organisation considering a deal needs to test all the assumptions it is making about that deal.

Using past trading experience, it forms a view of the future and makes sure there are no “black holes” through services that include:

  • synergy validation
  • maintainable earnings and future cash flow assessments
  • the determination of a normalised working capital and indebtedness position

We offer you a range of services from performing initial no-access reviews to data room reviews and full access due diligence assignments. We can also reconstruct entire sets of financial statements from primary documents.

When do you need financial due diligence?

If you’re trying to:

  • strengthen your core business by acquiring a company selling rival products that are almost identical in function or performance to your own
  • build on your existing activities by purchasing a company that sells or manufactures complementary products
  • purchase a company to gain access to its existing products in new markets, or to increase your customer base
  • expand your company’s current portfolio of products and services by acquiring new ones – potentially to provide a hedge against movement in your markets
  • spread your market risk by purchasing a company providing similar products or services in another country

How Kreston can help

Our services will help you:

  • enhance your understanding of the target business, increasing the likelihood that the deal will achieve its objectives
  • identify critical success factors that will improve your understanding of all the relevant issues, so you can make more informed decisions
  • highlight strengths that can be built upon and weaknesses that need resolving through in-depth analysis
  • challenge (deal breakers) or validate the target’s historic financials and forecasts
  • identify the real sources of profit and cash flow, assess their sustainability and underlying free cash, and confirm the value drivers
  • define cost savings and revenue enhancements by focusing on the available synergies and quantifying what is achievable
  • assess projections by reviewing the feasibility of the business plan and prospects.

Please feel free to contact us. We will be more than happy to help.