Corporate Finance & Due Diligence

Corporate finance is quite similar in contrast to forecasting & business plans, as both involves raising finance.  Corporate finance albeit, being on a much bigger scale and involving more complex business situations.  Many companies see expansion through the acquisition of another company/business, therefore in order to understand the targeted company, the buying parties will request a due diligence report on that company.  Such a report will of course be extremely detailed to address the key issues of the target company so that your ultimate buying decision can be made.  Similar to the fact that when an individual purchases a car, they may wish to ‘Hpi’ check the vehicle beforehand as this can highlight key issues and history so that no nasty surprises crop up afterwards. Companies are no different, but on a much bigger and complex stage.

Once a successful purchase decision can be made, the buyer may also wish to raise finance by means of a possible floatation on the Alternative Investment Market (AIM).  This form of raising finance can also be very complicated, but it allows you to offer your shares to the general public and once the company becomes successful, the organisation’s valuation depends on the share price accordingly.

RS Accounting Solutions can help you to draft a due diligence report, in the shape of either a ‘short form report’, or for detailed assignments a ‘long form report’.  Part of our work will be to examine the books and records of the targeted company, and visit their accountants/auditors to gain a better understanding of key issues.  We will address the risks and rewards along with the assets and liabilities combined with non-monetary issues to gain good understanding of the company’s health.

For assignments where a possibility of an AIM floatation may be a route for raising finance, we can help draft a detailed ‘working capital report’ which concentrates more on the financial position of the organisation, both current and future projections.  We will assess the basis of such projection models and explain its key limitations and assumptions.  We will also flex the models to give you an insight into various scenarios, should all not seem as rosy as it should.

Next step

Please contact us to see how we can offer our assistance