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Business Due Diligence

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Exceleo provides due diligence support for organizations considering mergers or acquisitions. None of our competitors are able to provide this service; however, our extensive experience with every type of business process optimization uniquely positions us to be able to offer this support to our clients.

Our approach to M&A due diligence is to provide independent, fact-based analysis of the Financial, Operational, and Technological status of the target organization. Our comprehensive due diligence provides investors with in-sight into the entire investment life cycle, which provides investors with an in-depth understanding of the overall health and future growth potential of a target business, enabling them to make informed decisions that maximize investment value.
Our experienced professionals have deep subject-matter expertise in financial analysis, business operational analysis, risk management, internal audit, technology assessment, security, corporate governance and compliance. We deliver comprehensive, easy to understand reports that clearly describe the current and potential status of the business and they also advise our clients of emerging trends and pressures within the industry. The reports include industry benchmarks and best practices and an assessment of how the target business measures up to the rest of the industry. Our senior-level consultants assess the quality of historical earnings, identify business and industry related risks, and make recommendations for transitioning and integrating the target business with your existing business. Our due-diligence service provides you with the information and detailed data you need to evaluate the target’s current and potential future value so that you are able to negotiate the optimal sales agreement. The table below outlines the components of our comprehensive due diligence service offering.

Financial Due Diligence


The financial due diligence analyzes and reports each of the following categories based on inputs provided by the target business,interviews with key stakeholders, and observations.

  • Accounting & Reporting Controls
  • Quality of Earnings
  • Cash Flow
  • Accounts Payable
  • Accounts Receivable
  • Bank Statement Reconciliation
  • Tax Filings
  • Debt and Obligations
  • Contracts
  • Quality of Assets
  • Historical Revenue
  • Historical EBITDA
  • Working Capital
  • Revenue and EBITDA Forecast

Technology Due Diligence


The Technology due diligence analyzes and reports each of the following categories based on inputs provided by the target business, interviews with key stakeholders, and observations.

  • Systems and Applications
  • Infrastructure and Technology
  • Risks and Opportunities
  • Obsolescence Identification
  • Technology Investment Forecasts
  • Disaster Recovery and Backup
  • Data Center
  • IT Policies and Procedures
  • Staffing and Vendor Resources
  • Controls and Compliance
  • Equipment
  • Contracts
  • Industry best practices mapping – Technology

Operations Due Diligence


The Operations due diligence analyzes and reports each of the following categories based on inputs provided by the target business, interviews with key stakeholders, and observations.

Business Processes

  • Comparison to Industry Benchmarks
  • Innovations and Competitive Advantages
  • Comparison to Best Practices
  • Controls and Compliance
  • Governance
  • Metrics and KPIs
  • Opportunities for Optimization
  • Risks to future success
  • Key Initiatives for each functional area (on-going and Planned)

Organization

  • Management Team
  • Skills and Experience of Staff
  • Staff Turn over
  • Compensation (current and historical)
  • Policies and Procedures
  • Opportunities for Optimization
  • Risks to future success

Voice of the customer

  • Customer Churn
  • Customer Relationship
  • Customer Satisfaction
  • Cross and Up sell Opportunities
  • Potential Synergies
  • Risks to future Success

Product and Services

  • Quality and Cost
  • Industry Position
  • Marketing and Sales
  • Supply and Scalability
  • Demand and Price elasticity
  • Risks and Opportunities