Mergers & acquisitions transaction services: engineering design and assembly business
Client with limited resources needed to conduct financial analysis and reporting process to determine closing price of acquisitions.
Existing challenges included:
- Unsophisticated Target with poor quality financial data which inhibited client’s ability to assess performance and ultimately valuation.
- Lack of financial and human resources at Target to address financial reporting and record keeping deficiencies.
- Time sensitive process upon which to provide client with a report and recommendations on the transaction.
How Mazars helped:
We assembled a team of skilled M&A professionals who were experienced in financial planning and process.
- Perform a targeted analysis into core accounting processes of the business, primary being percentage of completion accounting, to address inaccuracies distorting results.
- Analyze balance sheet for possible working capital considerations that would affect closing purchase price.
- Provide suggestions to correct and strengthen the quality of financial reporting.
- Provided client with accurate view of the financial results of the business, and recommendations for go-forward financial reporting improvements to implement.
- Informed client of various accruals and deposits that should be included in the debt of the Target, as opposed to net working capital, resulting in a decrease in purchase price of the transaction.
- With accurate financial information and clear visibility into accounts, client was able to close on the transaction