Acquisition and Divestiture Due Diligence Reviews

The way that a company structures its finances and operations can often have either a positive or negative impact on the success of a potential business transaction. The purpose of conducting a due diligence review in an acquisition transaction or preparing a company for due diligence in a divestiture transaction is to minimize any unexpected developments that could occur.

At Tronconi Segarra & Associates, we have the knowledge and experience necessary to assist buyers, sellers, investors and lenders in organizing and completing due diligence reviews. We can perform these services as an independent team or work closely with the client's internal resources. We will assess the business risk(s) associated with a prospective deal by conducting a thorough review process that will include the following:

• Analyzing historical financial information focusing primarily on identifying trends, evaluating allowances and reserves, and searching for unrecorded assets and/or liabilities.
  
• Assisting in the preparation of projected financial results, as if the deal were already completed, to determine if the deal is feasible.
  
• Conducting interviews to evaluate the strength of the current management team and to identify key employees.
  
• Completing a checklist of items prior to the close of the deal to ensure that the transaction is orderly and complete.
  
• Analyzing the pricing and the structure of the transaction to ensure that it makes good business sense for our client.
  
• Reviewing representations and warranties to determine if they are reasonable and achievable given the proposed transaction.