Financial & Accounting Diligence
– Over 50% of sellers grossly overstating profits.
– Each dollar of overstated profit nets a 4-8x multiple in valuation so the stakes are high.
– Even experienced buyers fail. Guardian Due Diligence brings over 20+ years and thousands of deals worth of experience. We can verify the accuracy of the financials so you can make the right acquisition decision.
Review of Financials
3 years historical plus year to date monthly financials (income sheet, balance sheet, cash flow statement).
Review of Tax Returns & Bank Statements
3 years of historical tax returns & 3 years of bank statements.
Review of Non-Recurring Expenses
There are typically some expenses incurred under former ownership that will not be part of the business under the buyer’s ownership.
Proof of Cash
Mission Critical. Reconcile & ensure that company provided financials match their bank statements. (*sample available)
Business Operating Model
How does the business make money? What drives the revenue up and down. What drives the costs up and down?
5-Year Pro Forma Projection
Five year financial projections taking into account the deal structure and amount of debt to service after the deal closes.