Context
Our client has asked us to carry out an audit as part of a project to acquire a target company.
Objectives of the acquisition audit
Our initial work was designed to help our client identify the risks and opportunities that could prove important in his investment decision.
Based on the available information and management presentations, we conducted an in-depth analysis of the significant points identified.
Scope of report and work
Our work focused on the following themes:
Presentation of the target company
- Description of its contractual and legal environment
- Presentation of key target figures for historical periods
Quality of financial information
- Comments on financial reporting procedures, accounting rules and methods, internal control systems ;
Latest balance sheet
- Analysis of the main balance sheet items and changes in relation to the previous year, in particular :
- Main fixed assets and their depreciation periods ;
- Composition of merchandise inventory ;
- Receivables and customer portfolio (average payment period, correct post-closing debt clearance, disputes, bad debts, etc.) ;
- Justification of cash balances ;
- Review of financial and operating debts, average supplier payment terms ;
- Review of provisions and litigation ;
Income statement for most recently closed financial statements
- Analyse des principaux postes du compte de résultat et de leur variation par rapport à l’exercice précédent et notamment :
- Review of sales, broken down by customer and type of service ;
- Analysis of operating expenses and identification of non-recurring items;
- Review of personnel costs and headcount.
- Breakdown of “normalized” adjusted EBITDA
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