In the world of Transaction Advisory Services (TAS), if you are a company, a senior or mezzanine lender or a Private Equity Group (PEG) that is ready to acquire, invest or make a loan to a business, the scouting report you need takes the form of due diligence. Withum has a sophisticated team of qualified due diligence personnel who understand transactions, can refine the nature of information they need, effectively and efficiently obtain this information, review it and prepare the type of analytical report you will need before you complete your transaction.
Developing the overall game plan for your cash flow loan or acquisition, understanding the business and risk issues, being able to diagnose tax issues which may arise and coming up with the structure which is most tax efficient while at the same time helping advise the process is all part of what our TAS professionals do. They know that making the right moves before the deal is done is half the battle. With significant transaction experience, our specialists can quickly become a valued member of your team by either providing quality advice on business issues, accounting and tax structure or performing the required on-site diligence procedures. They work alongside investment bankers, attorneys, company personnel and other professional advisors to ensure the appropriate effort is spent to understand issues and risks and to suggest methods for mitigating any concerns.
While there are a number of situations where our TAS group has been successful, there are three where we are particularly effective:
Management teams need resources to grow and to take their game to the next level. When there is a significant transaction such as a buyout, a leveraged recapitalization or a significant acquisition, senior, mezzanine and other cash flow lenders provide the resources that help fuel that growth.
Once a senior, mezzanine or cash flow lender comes onto the scene, they are often dealing with a growing company that faces a more complex structure. The projected cash flows and Quality of Earnings are critical elements in determining the level of resources to provide. If your transaction involves a Private Equity Group, there is a good chance that you can rely on their due diligence procedures. However, in more and more cases, you may be involved with a “fundless” deal and you may need some help in determining whether your next “big thing” is prepared for the future.