Buy-Side Due Diligence Overview:
When a tribal client is interested in investing in a company or a development project, they will want to ensure that the deal is thoroughly reviewed so that the client can decide if they want to proceed with the investment and ensure that they pay the right price. Through our Buy-Side Due Diligence Service offering, we provide peace of mind to our tribal clients by analyzing and validating all financial, operational, and strategic aspects of the deal, and work with the client to structure and negotiate a favorable deal. We work to understand the target company’s underlying business risks, operational strengths and weaknesses, and the critical issues impacting the transaction. After we fully understand the various aspects of the deal, we assist in developing a deal structure and purchase price and then help negotiate the deal with counterparties.
Our Buy-Side Due Diligence Service offers the following to our tribal clients for any potential investment in a target company or new development project.
- Assessment of the target's earnings and cash-flow quality.
- Evaluation of the quality of assets and liabilities being acquired or assumed.
- Analysis of net debt and working capital.
- Assessment of any construction costs.
- Identification of internal control weaknesses.
- Review of contracts.
- Development of independent estimates of target company’s (or development project’s) projected cash flows.
- Valuation of target company or new development project as basis for purchase price determination.
- Assistance with review of the purchase agreement.
- Assistance with deal negotiations.
Buy-Side Due Diligence Benefits:
We work closely with our tribal clients to evaluate all aspects of a target company or development project. We want to make sure that the deal is right for our clients and therefore through our Buy-Side Due Diligence process we ensure that our clients are able to make fully informed decisions about how and whether to proceed with an investment in a company or development project.
NorthernLights Advisory Services will provide the following benefits.
- Meetings with the tribal client to discuss aspects of target company or development project and understand investment objectives.
- Thorough review of all target company or development project documents, including contracts.
- Review of target company or development project financial information.
- Develop independent estimates of cash flows.
- Review of any construction costs.
- Develop independent valuation estimate.
- Review of purchase agreement.
- Summarize any internal control issues.
- Assist with deal structure.
- Assist in negotiations to obtain the best deal for the tribal client.