Case Study
Confirmatory Due Diligence for European Private Investment Firm
Client Challenges
European Private Investment Firm - through a portfolio company
Acquiring US based add-on acquisition
CFO and Controller had completed some diligence but were unsure they caught everything in diligence
European lender required a local due diligence advisor
Short turnaround time and some language barriers
Project Scope
Confirm full year and TTM EBITDA (basis for purchase price)
Evaluate appropriate working capital levels for target company
Provide opinion on revenue recognition
Interview Owner and CFO to verify accounting procedures
Provide opinion on pro-forma taxes for target company
Create due diligence report to deliver to bank to secure financing
Our Solution
Guardian tailored a solution to the family office client’s specific needs.
Validate EBITDA
Evaluated financials, bank statements and tax returns
Reviewed CFO and Controller’s preliminary work
Validated EBITDA was accurate and price was appropriate
Provided GAAP to IFRS consulting and conversion
Evaluate Accounting Processes
Onsite interview of Owner and CFO
Evaluated internal controls and processes (gap analysis)
Validated correct usage of accounting software
Performed talent assessment of finance team
Report for Lender
Compiled findings into diligence report used to secure financing for the deal
Provided an opinion on both working capital and pro-forma taxes
Results Delivered to Client
Secured Financing
Made lender comfortable with the local nuances of the business and cash flows.
Validated EBITDA
Validating target company EBITDA Providing GAAP to IFRS conversion.
Increased Certainty to Close
Each piece of work removed risk from the transaction and helped the investment firm and stakeholders get comfortable making the investment.
Work With Us
Get in contact with a member of our team to discuss your deal today.