Reverse Due Diligence
Reverse due diligence helps cast you in the best light.
In our reverse due diligence process, we are engaged by the Seller to perform due diligence on the Seller’s business as if we were representing a prospective Buyer. By putting ourselves in the prospective Buyer's mindset, we can uncover opportunities, and problems, then take corrective action to ensure maximum appeal. This proactive self-assessment helps optimize value in numerous ways:
- Identify opportunities to improve earnings and/or cash flow
- Identify opportunities to reduce or mitigate risk factors
- Identify and correct problems
- Proactively disclose issues and related responses to establish credibility and avoid having the Buyer use them against you later in the negotiation
- Provide an objective assessment to accompany the marketing-oriented offering memorandum
- Facilitate an efficient and confidential screening process with initial Buyers by providing information in a concise report, avoiding the disruption and risk to confidentiality of repeated due diligence visits
- Expedite due diligence by the prospective Buyer
- Identify issues and opportunities to enable structuring of a tax-efficient transaction
Our reverse due diligence process also includes an assessment of the proposed Buyer/Investor, analyzing areas such as its financial viability, strategic alignment and cultural fit.