Acquisitions and client-side due diligence
Test the investment case before capital and commitment are at risk.
Commercial and financial assessment that challenges assumptions, identifies risk and gives buyers a clearer basis for negotiation and integration.
The decision
An acquisition can look compelling at headline level while carrying weaknesses in earnings, working capital, customer concentration, capital requirements or management capability. Effective due diligence tests how the business actually operates and whether the buyer’s investment case is supportable.
Silver Downes Advisory works on the client side, coordinating commercial and financial analysis with the buyer’s legal, tax and other specialist advisers.
Where this helps
- SMEs considering their first acquisition
- Experienced buyers requiring independent commercial support
- Professional advisers needing practical financial or operational input
- Owners assessing an asset, management-rights or business opportunity
Typical scope
Investment thesis
Clarify the rationale, expected synergies, critical assumptions and conditions required for value creation.
Quality of earnings
Test revenue, margins, add-backs, one-off items, owner remuneration and maintainable earnings.
Cash and working capital
Review cash conversion, debtors, inventory, creditors, normal working capital and likely completion adjustments.
Commercial risk
Assess customers, suppliers, pricing, competition, concentration, contracts and operational dependencies.
Capital and funding
Consider immediate investment needs, deferred maintenance, funding structure, covenants and downside headroom.
Integration priorities
Identify the first decisions, controls, people and reporting required following completion.
Practical outcomes
Advice designed to improve the decision.
- Tested assumptions
- Visible deal risks
- Stronger negotiation position
- Clear integration priorities
The scope is agreed with the client and complements, rather than replaces, legal, tax, technical or other regulated specialist advice.
Start a conversation
Discuss the decision in confidence.
Outline the situation and Scott will respond directly to arrange an initial, obligation-free discussion.