Most acquisition and investment related due diligence activities revolve around uncovering financial, legal and/or environmental risks and the corroboration of formal reporting and business narratives.
At Silverstone we offer due diligence services designed to take an acquirer and investor beyond traditional due diligence findings.
Our due diligence engagements can be brief, focused on any of the above or extended as part of the acquisition team.
- We take a "deep-dive" into business and financial models;
- We test strategic and operating assumptions;
- We stress test business valuations, acquisition leverage assumptions and IRR equity thresholds;
- We analyze potential pre-investment capital structure issues that may require cleaning up and restructuring prior to investment and closing;
- We go deep into an organization, understanding both barriers and pathways to successful business plan execution;
- We identify post acquisition integration issues and key integration predicates and strategies;
- We examine and validate senior executive core abilities, adaptability to change and leadership skills, and thoroughly evaluate a target company's bench strength;
- We examine innovation and product pipelines, explicate underlying business assumptions and market applications, and review these in current market and emerging technology contexts;
- We explore and analyze target company customer relationships, identifying what will sustain customer continuity and what threatens it;
- We review competition---currently identifiable and emerging.