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.