Buying or Selling A Business?
One of the most significant Change Moments you, as a business owner, face during the life cycle of owning your business is when you decide to buy or merge a competitor into your company. Where do you start? What’s involved in the process? How do you protect yourself? It can be both an exciting and scary moment. The expertise and experience of your CPA advisor will be vital to a successful transaction. It is at this moment that you need to ask yourself -- how confident do you feel about your accounting firm’s ability to provide you with the right information before the deal and steer you away from surprises after the deal is done?
The Difference Is Planningsm cannot be overstated. The due diligence process should be comprehensive. It is in both the buyer's and seller's best interest to complete due diligence in order to avoid disputes later. You will need to make decisions based on thorough due diligence, realistic financial projections, reliable valuation analyses and post-acquisition integration plans. Failure to plan and conduct detailed due diligence and a methodical risk assessment can lead to — at a minimum — an expensive decision and — at worst — the failure of your business.
This may be your first big business deal, but rest assured Dugan & Lopatka has gone through hundreds of similar deals since 1974. As one of Chicago’s largest CPA firms and one of the only ones focused almost exclusively on small and mid-sized privately-held companies, we are committed and prepared to provide you with the financial advice throughout the transaction that will improve your chance for success.
Dugan & Lopatka Merger & Acquisition Services
Dugan & Lopatka, CPAs has the experience to support companies through every aspect of a merger and acquisition including:
Early Research and Candidate Selection
- Researching and preparing a list of potential acquisition candidate companies.
- Anonymous exploratory inquiries.
Early Investigations and Early Discussions
- Evaluate and analyze historic information on the company.
- Estimate the company's future earnings capability and financial position.
- Analyze market value to provide a baseline for determining how much to pay.
- Assist with the tax implications pertaining to the structure of the purchase price and the terms of the deal.
- Prepare projections for the acquisition's performance and bottom-line return based upon the price, terms of the deal, financing and new operating assumptions.
- Estimate the Internal Rate of Return to investors.
Due Diligence Analysis and Negotiations
- Conducting audits or agreed upon procedures and evaluating assets of acquired companies.
- Advising on proper accounting methods and adjustments.
- Consulting on business valuation and purchase price.
- Reviewing and advising on acquisition agreements. Advising on tax planning opportunities.
- Creating pro forma financial statements for combined entities.
- Coordinating the combining of accounting and administrative support.
The key to a successful transaction is teamwork. Dugan & Lopatka, CPAs will work closely with your other advisors (attorneys, bankers and venture capitalists) to ensure that you maximize your value and minimize transaction-related income taxes and costs (including those from your advisors).
Contact Dugan & Lopatka today at (630) 665-4440.