For significant business transactions like Mergers & Acquisitions (M&A), or business sales, thorough due diligence is essential. A critical aspect of this due diligence process is to hire a team of transaction support specialists who provide a range of services that initially give a thorough review and analysis of the target company’s financial information. Transaction support can help investors and companies make informed decisions by identifying potential risks and evaluating post-deal financial projections.
What´s Transaction Support?
Transaction support is a term used in the financial industry to refer to a range of services offered to companies considering a significant transaction, such as a M&A, or sale of a business. These services focus on the review and analysis of the target company’s financial information, to provide a comprehensive and accurate assessment of the company’s financial situation and any potential risks.
Transaction support services may be offered by external consultants such as accounting firms or financial advisory firms. The goal is to objectively evaluate the target company’s financial situation and potential risks, which helps investors and companies make informed decisions about the transaction.
Wich services can Transaction Support do?
Transaction support services generally include a detailed review of the target company’s financial statements, as well as accounting and tax reports, an evaluation of accounting policies and procedures, calculate the quality of earnings (EBITDA), working capital and identification of any contingencies or potential risks that may impact the transaction. Transaction support services can be offered to sellers and buyers.
Detailed analysis: The importance of Transaction Support
Additionally, the transaction support team may also supply a detailed analysis of pro forma financial statements, which are projections of the target company’s financial situation after the transaction. This helps stakeholders better understand the transaction’s financial impact and evaluate its viability.
As the importance of transaction support continues to grow, businesses need a partner they can trust to provide expert guidance and analysis. One such partner is Orbe Advisors, a leading provider of transaction support services. With a team of experienced financial and accounting professionals, Orbe has helped numerous businesses successfully navigate significant transactions. If you’re considering an important business deal, contact Orbe Advisors to learn more about how transaction support can help minimize risk and maximize success.