MFA provides due diligence services to organizations that are considering direct investments, strategic partnerships, joint ventures and mergers & acquisitions. Our seasoned professionals incorporate a unique blend of investigative, analytic and financial skills with a focus on the strategic value of the target business that is the subject of the transaction. We focus on facts, trends and behaviors that are critical to the success of a deal, as well as risk factors that may preclude the success of a transaction. We also dig deep to provide that necessary added insight into the future value of the target business across a wide variety of factors.
Financial Due Diligence
Financial due diligence is a key aspect in the overall evaluation and assessment of a target business’s transactions. It enables companies to obtain a more complete picture of the financial realities of a target business by reviewing the quality of earnings, conducting integration assessments and assessing the purchase price.
At MFA, we assist strategic and financial buyers in verifying financial results on which an offer is based in order to provide a level of confidence in the underlying performance of the target organization. Our comprehensive financial due diligence services focus on analyzing and reporting on quality of earnings; identifying overvalued, undervalued and unrecorded assets and liabilities; reviewing forecasts and budgets; and assessing prospective future operating results and cash flows. As part of the process, we also evaluate and advise on complex tax issues, deal structuring, reporting requirements and general economic conditions in the particular industry. Furthermore, to ensure we deliver a well-rounded and comprehensive view of the target business, we identify and report on any risks related to corporate governance, financial reporting and the accounting environment in general.
Tax Due Diligence
Each transaction brings its own set of potential exposures to buyers and sellers. MFA’s tax due diligence professionals draw upon their extensive transaction experience to help clients to understand the tax implications of a proposed deal and determine the optimal tax structure for creating maximum deal value. We analyze historical tax returns and financial statements to identify tax risks and tax opportunities associated with a contemplated transaction. We also identify relevant sales, use and miscellaneous tax issues that may result from the transaction. In addition, we work closely with our clients and their legal advisors to structure a deal in the most tax efficient manner which can add significant tax savings and real value to the bottom line of any transaction.
IT Due Diligence
Perhaps one of the most important, yet often overlooked parts of due diligence for mergers or acquisitions is assessing the IT component of the target company. At MFA, we provide a comprehensive assessment of your target company’s current technical environment including issues and financial implications. We take it a step further and identify opportunities where you can leverage the target’s technology and provide recommended transition initiatives to ensure a successful merger of technologies.