Businesses in the process of growth and expansion undergo acquisitions, mergers or partnering opportunities in the form of joint venture etc., Its highly important to professionally study in detail the worth of such investments that an Organization is expecting to invest upon and also to understand the potential major threats or issues involved in the same. Analyzing the prospect, understanding and assessing the value plays a major role in finalizing a mutually profitable deal for all the parties involved.
We at Infini with our experienced team of professional assist in financial, legal, tax due diligence and business analysis and valuation for organizations that are looking out to invest, enter into strategic partnerships, or improving their existing business by way of de-merging.
We assist by giving our clients the most valuable inputs which form a significant part in the most-crucial decision making and negotiation process of any deal.
Financial Due Diligence
Any Acquisition deal to go through needs a robust Financial Due Diligence to be conducted which will help in understanding the present status and the future growth prospects of the Target entity.
In Financial Due Diligence we help our client in assessing the target entity’s financial health and stability, do a study on revenue and market due diligence, synergies, maintainable future cash flows and earnings and overall operational issues, finally assisting in deal structuring.
Legal Due Diligence
May it be a part of your acquisition of a running business or just the infrastructure owned by another business in terms of their property be it land or building or both, the need for a legal due diligence to ensure clean title to the property as well the availability and compliance of all the necessary approval requirements is a must.
We at Infini, with our team of associate legal professionals, help in due an in-depth legal due diligence of such transactions.
Tax Due Diligence
Understanding the various Tax implications that are applicable to a Target entity, the present tax related demands and disputes that are in progress and its probable impact of them on the future business sustainability of the entity are all very crucial in the stage of decision making and deal negotiation. We help our clients in doing through study of the present and potential tax impacts on the target entity.
What is due diligence? Why is it important?
A due diligence is an appraisal undertaken by a prospective buyer of its target entity in a comprehensive way so as to assess its assets and liabilities and evaluate the commercial potential of the target entity. An acquisition along with bringing in synergies and lot of other strategical and commercial advantages, could also bring with various risks from the past operations. That is why a comprehensive due diligence covering the financial, legal and business aspects of an entity plays a vital role before a deal is struck.
What are different ways in which I can acquire another business which interests me?
There are various ways in which a business Is taken over. Amalgamations, mergers, demergers, purchasing majority stake by way of transfer of shares, investing in the form of compulsorily convertible debentures which gives a future stake in the business on conversion into equity etc are various ways in which an acquisition takes place.
What all should I consider before fixing up the price for my acquisition?
Assessing target entity’s financial health and stability, studying the revenue streams and pipelines and doing a market due diligence, synergy study, analyzing and understanding the maintainable future cash flows and earnings and getting an understanding of overall operational matters, everything plays a vital role in deal structuring and negitiation.