The decision to invest in or buy a business will have a permanent impact on the company or fund taking such a pivotal action. While there are significant potential benefits to a capital investment, there are also serious risks and uncertainties that need to be identified. Due to the far-reaching ramifications of such decision-making and the complexity of merger and acquisition (M&A) transactions, it is imperative that the investors be advised upon by experienced professionals dedicated to the M&A process.
Anchin’s Transaction Advisory Services group approaches financial and tax due diligence with industry-focused professionals experienced in numerous M&A transactions. This team is supported by a tax department with over 100 professionals and an overall accounting firm with more than 350 people focused exclusively on the world of privately-held businesses. Experts within our dedicated industry groups have a wealth of intellectual capital to draw upon to give our clients a clear understanding about the target company so issues are identified and mitigated in a timely fashion.
When Anchin performs due diligence, you receive senior-level, industry specific support from a dedicated group of M&A professionals.
With a special focus on middle market transactions, our integrated team of financial and tax transaction specialists takes a multidisciplinary approach drawing from our in-house industry experts. Anchin’s Transaction Advisory specialists maintain experience across a multitude of industries, including, among others:
- Business Services
- Consumer & Industrial Products
- Food & Beverage
- Fashion & Apparel
- Manufacturing & Distribution
- Professional Services
- Public Relations & Advertising
- Transportation & Logistics
Financial and Accounting
We will provide you with clear insight into the target’s historical financial performance, as well as assist in testing the assumptions and sensitivities related to its forecasted and projected results. Anchin’s dedicated industry groups enables our professionals to look beyond the numbers to understand the risks involved with an acquisition.
Our experts tailor the scope of work for each transaction to focus on the key risks and sensitivities that are important to you. While the ultimate scope of work will be based on the target and feedback from our clients, the following steps are typically performed:
- Evaluation of the financial performance and run-rate quality of earnings
- Evaluation of the quality of assets, working capital requirements and indebtedness
- Analyses of operational data utilized by target’s management to run its business in order to gain an in-depth understanding of the drivers of financial performance
- Analyses of key customers and/or products as to performance, trends, concentration, profitability, etc.
- Analyses of profitability of lines of businesses, including price-volume analysis
- Read significant agreements and contracts with customers and vendors and analyze the impact on the business
- Vetting of the company’s budgets and/or projections
- Evaluation of any other information or documents that could impact the financial performance of the target such as employment agreements, leases, contracts, revenue back-log, legal invoices, etc.
- Identify weaknesses within the financial reporting process and provide recommendations on how to improve upon such weaknesses
- Comment on financial and accounting sections within the purchase agreement
Our tax department will determine if the company properly filed its taxes in a timely manner and with the proper jurisdictions. We will also check for substantial discrepancies. Once the taxes are properly accounted for, we will be able to tie potential tax liabilities or benefits into the overall deal structure.
The following steps are typically performed during tax due diligence. These steps will result in the development of the most advantageous tax strategy for the company that you are contemplating acquiring:
- Review of the tax filings and other tax issues relating to the specific business and its operations
- Review of payroll tax filings and compliance and evaluation if additional filing requirements are necessary
- Review of sales tax filings and compliance
- Review of income tax filings and evaluation of tax positions taken as well as other options that may be available for reducing income taxes
- Evaluate if filings may be required in other state or local tax jurisdictions
- Review of prior tax examinations and impact on future operations
- Review of the classification of individuals working for the target as employees or independent contractors
- Other matters that may require additional filings
- Analysis of the various structuring opportunities available given the contemplated acquisition
Below are some highlights of our recent work:
- Credit managers to exploit market dislocations - firms raising capital and preparing to pounce on opportunities they see in distressed sectorsJuly 13, 2020
"We have a health crisis and an economic crisis and they go hand in hand... It's hard to predict where the markets are going to end up," said Olamide "Lami" Ajibesin.
- Cerberus Exits Albertsons via Discounted IPOJune 29, 2020
A reduced price for supermarket giant Albertsons Companies Inc. (ACI) by Cerberus Capital Management LP got the initial public offering from the supermarket giant to the finish line on Friday, June 26.
Cerberus sold all 50 million shares in the IPO for the Boise, Idaho supermarket chain for $800 million in proceeds, about seven years after the New York private equity firm acquired the company.
- Anchin: The Virtual Strategist CFOJune 12, 2020
Chris Noble explains how Anchin's outsourced accounting services group, now rebranded as the Client Accounting Advisory Services Group (CAS), is a natural extension of Anchin's proactive client service model.
- A Timely Message from Marc Federbush and Anchin’s Fashion GroupMay 26, 2020
In continuing to provide relevant and useful information with the fashion industry in mind, these pieces highlight M&A, which is widely predicted to bring about major, rapid changes in the fashion industry in the post-COVID landscape.
- Hunting Private Equity Opportunities In Stressed TimesMay 12, 2020
“There will be a lot of distressed assets coming up for sale,” Olamide "Lami" Ajibesin, who leads transaction advisory for Anchin, a public accounting firm in North America, said. She advises private and public clients on M&A and PE transactions (including secondaries) and strategic investments in energy (E&P/oil and gas, power), consumer products, industrials, financial services and technology, among other industries.
- How Blackstone Will Get Troubled Assets 'To the Other Side'April 29, 2020
Blackstone Group is using the new private equity playbook for sectors such as hospitality, retail, and entertainment hit hard by the coronavirus pandemic market –assessing damage and sorting through ways to get portfolio companies “to the other side.”
- M&As & Coronavirus - Focus on five steps to help you navigate the pandemicMarch 25, 2020
You decided to undergo an M&A transaction and finally signed an LOI, but now there is a pandemic. What do you do now?
- COVID-19 Update Center
The Anchin COVID-19 Update Center is available to simplify your access to critical financial information. It is updated regularly to supplement your communications with your
- Lami Ajibesin, Managing Director of Anchin's Transaction Advisory PracticeMay 13, 2020
Lami Ajibesin describes the full-service transaction advisory work her group performs for financial sponsors and strategic investors.
- Marc Federbush, Leader of Anchin's Consumer Products GroupMay 11, 2020
Marc Federbush explains why Anchin is the "go-to" accounting firm for consumer products companies.