Due Diligence & Valuation for Logistics Acquisition Risk Management
/ Case Study / Due Diligence & Valuation for Logistics Acquisition Risk Management

Due Diligence & Valuation for Logistics Acquisition Risk Management

Issues

A private equity firm considering the acquisition of a regional logistics company needed to validate financial statements, asset values, and assess potential off-balance sheet liabilities.

Solution

Comprehensive financial and operational due diligence uncovered discrepancies in receivables and underreported regulatory fines.

Approach

Our team performed a deep-dive review of the target’s financials, contracts, operational metrics, and contingent liabilities. We applied scenario-based valuation modeling to stress-test potential outcomes.

Recommendations

We advised renegotiating the purchase price and escrow terms based on uncovered financial exposure, and delaying acquisition pending regulatory resolution.

Engagement ROI

The buyer secured a 12% reduction in acquisition price, avoiding over $3M in potential post-deal losses.

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