Financial due diligence
We help you
We appreciate a transaction is a critical decision as it represents an important investment for which you want to maximise its return. You need to get a professional review covering all angles of your transaction to help your decision making process.
We propose to perform or advise on the financial due diligence of the targeted company (buy or sell side).
The objective is to submit a fair, independent opinion on the current and projected financial, business health of the targeted company.
As trained in Big 4, we follow the big 4 financial due diligence methodology.
We analyse
- The context and current market of the transaction, the organisation,
- The profit and loss statement from sales to net income, by breaking down by geography, products…
- The balance sheet statement, assets, customers, suppliers, employees, debt, equity..
- The cash flow statement from operations, financing, investing
- The projected financials, assumptions..
Typically we deliver a detailed writing report to investors with the following standardised sections:
- Executive summary highlighting Quality of Earnings, Entreprise-Equity value bridge, Value leakage, key points on the transaction,
- Analysis mentioned above, broken down in Cash flow, Balance sheet, Profit and Loss, Business Plan
- Appendices
We agreed progress call with you beforehand and we keep you updated on progress and findings accordingly, until the completion date.
Performance improvement
We help you
To improve the value creation chain by delivering quick operational performance improvement along with cost saving in any industry.
The main focus is to accelerate the value creation by identifying key drivers that can be fixed by quick sustainable actions, and to propose sustainable longer-term plan for other key drivers that need more profound transformation.
Typically, the EMH Advisory outcome is a phased improvement plan, built with all relevant stakeholders and validated by you.
One of possible scenario of the way to work together is:
- EMH Advisory governs the execution of this plan in the beginning and will pass its ownership to one project manager in your team.
- EMH Advisory presence will be full until they start executing the plan and then will gradually reduce until full improvement plan’s ownership is transferred to you.
Inside or outside the transaction lifecycle
EMH Advisory can accelerate value creation inside or outside the transaction life cycle.
1) During financial due diligence
EMH Advisory can work on the financial due diligence when you acquire a new business. The idea is EMH Advisory performs or is involved in the financial due diligence depending on your requests, and starts to build with you an improvement plan that can be executed from day one of the transaction. It will fast track the acceleration of the return of your investment.
2) Post acquisition - Accelerate integration
EMH Advisory can work after transaction to deliver its work to find synergy, efficiency to integrate this targeted company.
3) Outside transactions
EMH Advisory can work outside the life transaction cycle to recreate value in the chain when some steps are broken or don’t work as designed/planned.
EQUITY VALUATION
We help you
To estimate the valuation of a company.
- We apply the common methodology used on the corporate finance market place: discounted cash flow, multiples, benchmark regarding recent similar transactions.
- We analyse the past and future financial performance, propose adjustments and calculate the enterprise value based on the common valuation methods.
- We present our professional, fair opinion in a written report with supporting documentation.
internal audit
We help you
To strengthen your control environment to bring or bring back your organisation to a place where every critical transaction, or process is independently controlled by an internal documented control.
A satisfactory control environment plays its part in the performance improvement.
The objective is NOT to create a non added value administrative task, but to create value by demonstrating and assuring your business transactions and processes are under control.
It covers all processes: order to cash, purchases to pay, human resources, supply chain…
Typically the outcome is a flow chart by processes, showing the information flow with the internal control points mitigating the main risk identified in the process workflow.
We set up a recurring testing program from where main stakeholders receive an activity report to:
- review exceptions,
- verify these internal controls operate as designed.
We train your team to perform independent testing on each internal control.
interim or secondment
We help you
To cover temporarily a finance position to ensure your finance department and activities are not disrupted.
As financial consultant, we work with your finance team to prepare your month end tasks.
We review postings, reconciliations, actual against budget, forecasts with explanation of main variance by relevant stakeholder.
These covered positions are mainly financial, business controller or head of finance, finance director roles.