In the context of M&A transactions, buyers are often confronted with the question of an appropriate determination of the purchase price. Significant information asymmetries between the buyer and seller side usually become apparent when both sides disclose their ideas on the company valuation for the first time. To be able to carry out a company valuation under objective conditions and to reach a purchase price agreement, due diligence checks must be carried out. The aim is to uncover hidden risks as well as opportunities and to include them in the company valuation.
If parts of a company or even entire company structures are sold, the buyer and seller must reach an agreement on the purchase price within the framework of due diligence. This aims to consider all opportunities and risks and, based on this, to ensure an objective valuation of the transaction object.
The aim of a due diligence review is a company valuation without any subjective influences from the buyer or seller side. To secure the planned purchase, the transaction target must be carefully analyzed, examined and evaluated for this purpose, so that clarity can be created within this framework about traded opportunities and risks.
The specialists of ensign advisory have extensive M&A experience and support in due diligence reviews of all kinds. In the tight schedule of due diligence, it is important to identify all relevant opportunities and risks through careful analysis and examination for the purpose of a comprehensive risk assessment. The results of the individual examinations flow together in the due diligence report, which is used as a basis for decision-making in the final price and contract negotiations.
In the context of transaction intentions, we advise our clients in a completely neutral manner, jointly define milestones and achieve them. If clients want to invest for strategic reasons, we check above all the willingness to change and the qualifications of the employees, as well as the documentation of all processes and information flows, current budget allocations and the attitude of the clients. If clients want to invest with a financial focus, we focus above all on the quality of the management level and the leadership personnel, compliance with budgets, liabilities of all kinds, the functionality of quality management and all legal corporate structures.
The due diligence reports of our consultants support the investment case and clearly show where risks and potentials are to be expected. Our reports are holistic and sufficiently exhaustive in their respective areas so that our clients can make well-founded and secure decisions based on them.
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