RSM Australia

Transaction support & due diligence

The due diligence process provides a detailed review of a target business from a financial and commercial perspective, adding value by focusing on the key issues likely to affect the decision to proceed with the acquisition and those factors which affect the price. 

We have developed a tailored due diligence methodology that enables us to provide a value added service by focusing on the key issues relating to your transaction, the target business and the impact of the acquisition on your business.  Our methodology ensures that we:

  • Identify the key issues. These key points will assist you in the decision as to whether to continue with the acquisition through the identification of deal breakers.  The identification of these issues is also critical in enabling you to negotiate the final consideration to be paid for the business;
  • Evaluate the purchase price through a detailed review and appraisal of financial projections and the assumptions underpinning the projections
  • Review the implications of the proposed transaction structure and advise on alternative structures which may be more attractive from your perspective as a potential purchaser
  • Advise on the financial, taxation and commercial aspects of the purchase agreement.  Such agreements often contain financial mechanisms and clauses which can impact upon the purchase price.  We work closely with your legal advisers to ensure that the purchase agreement includes the necessary protection that you require when buying a business.

The scope of our due diligence work is tailored for each engagement to ensure that our work is focussed on the identification and quantification of key issues that may impact on the target business, its marketplace and your consolidated business post acquisition.

Debt free, cash free transactions – the devil is in the detail

6 January 2020
Most private M&A transactions are undertaken on a debt free, cash free basis. This means the vendor pays out any debt at completion and keeps any remaining cash in the business (typically by way of a pre-completion dividend).

10 tips to make your business transaction-proof

13 September 2018
Are you and your business ready to take the next step?

Directors shouldn’t second-guess asset values

6 July 2016
Regardless of their size, past acquisitions are coming back to haunt the financial statements of a growing number of ASX-listed companies.

Key contact

Glyn Yates

National Head of Corporate Finance