Transaction Services
Acquisition Audit.
Secure your acquisition project. The acquisition audit provides you with a clear, certified, and unfiltered view of the target's financial strengths and weaknesses before signing.
The Mission
An in-depth accounting, financial, and tax investigation of the business you wish to acquire. Beyond official balance sheets, we analyze the economic reality to validate profitability, identify hidden liabilities, and justify your offer price.
Buying with Open Eyes
Acquiring a business is one of the most significant decisions a business leader can make. The balance sheets provided by the seller always present the company in its best light. Our role, as independent auditors, is to lift the hood and inspect the reality of the numbers.
The acquisition audit (or buy-side due diligence) led by Audit-AAM helps break down information asymmetry. We track overvalued inventory, insufficient provisions, latent labor disputes, and hidden debts that could impact your future profitability.
From Findings to Price Negotiation
Our work is not limited to delivering a compliance report. We transform our accounting discoveries into financial negotiation leverage.
If we discover that the target company requires urgent capital expenditures to meet compliance standards, or that its cash level has been artificially inflated prior to sale, we provide you with the quantified arguments to request a price reduction or to strengthen contractual guarantees.
The AAM Method: Protecting Your Investment
We understand the dynamics of an acquisition. Time is short and confidentiality is absolute. From the very first days of our intervention, a signing Partner alerts you if a structural risk (a “Red Flag”) is identified, allowing you to stop the transaction or redirect negotiations immediately.
Have you signed a Letter of Intent (LOI)? The exclusivity period is the crucial moment to audit your target. Contact our Transaction Services division directly to structure your acquisition audit.
Methodology
- 01/ Critical review of historical profitability and normalization of non-recurring expenses.
- 02/ Analysis of WCR (Working Capital Requirement) and actual cash generation.
- 03/ Mapping of tax, employment, and off-balance sheet liabilities.
- 04/ Immediate escalation of major red flags (Deal Breakers) during the mission.
The AAM Difference
- A clear and pragmatic voice, designed for business owners' decision-making.
- Translation of our technical findings into direct leverage to negotiate your purchase price.
- Synergy with your lawyers to shield the Asset and Liability Guarantee (GAP) clause.
Target Impact
Risk
Controlled. You buy with full knowledge of the facts, at the right price.
Contact a partner