Patrick O Donovan Accountants

Due Diligence

In the current economic climate value for money is crucial. When examining a target business it is essential that, product, financial and legal due diligence is addressed. Business plans and projected sales and profits need to be verified in line with industry experience and the previous trading history of the business if applicable. Any accounting policies should be fully understood as to their affect on profits. Profits should be revised and restated in line with accounting policies of the acquiring company. This would be IFRS in the case of Ireland and the UK. Cash-flows and seasonal changes will need to be examined carefully. Matters such as market dependency, financing overheads and human resources all feed into issues that need to be taken into account when buying or selling a company. It is imperative that when one sees a target that one examines how this will improve your current business model.

A group of competent qualified professionals at your side when making these decisions is imperative. It is also imperative that business plans are prepared by competent professionals when selling a business, embarrassing errors or miscalculations have cost a sale on more than one occasion. Therefore product, financial and legal due diligence could be carried out on both the acquiring and supply side.

To discuss any of the above services or to enquire about other services contact us on (051) 304156 or visit our contact us page.