Buyside Diligence
Financial diligence is a crucial part of any acquisition, and “Quality of Earnings” (“QofE”) has become ubiquitous.
The Trialta team has, collectively, spent decades conducting in-depth, data-driven diligence around potential M&A activity. While the QofE is generally the centerpiece of the diligence work, effective financial diligence includes a more holistic approach, including balance sheet analysis to identify working capital trends and indebtedness issues, analysis of operational details to understand the “why” of the EBITDA trends, and assistance with purchase agreement negotiations. Ultimately, our goal is to help you better understand the business and your investment, rather than providing you with a laundry list of accounting issues. This approach makes us a great fit for clients looking for a value-added partner rather than a provider to check-the-box for third parties.
While our teams have deep experience in full-scope diligence processes, we recognize that every situation is different. Each project is individually tailored to focus on the key issues which drive value for you. In the case of small deals or special situations, a limited set of procedures may be more appropriate. We have also worked with our clients to develop phased, industry-specific approaches to get key answers quickly and efficiently in advance of turning on other diligence workstreams. Our boutique platform allows us to customize the solution to best match your situation.
“ With Trialta’s support, we successfully identified & execute several optimization projects in an otherwise forgotten basin. These initiatives led to a stabilization of productuction and midstream operations in a long-lived convensional asset base.”
frequently asked questions
Who needs buyside due diligence support?
All buyers should do some level of financial diligence as a part of a transaction. And it’s not just a good idea; many external parties providing reps and warranties insurance, financing, etc. require a third-party due diligence report.
Why is buyside due diligence important?
Whether it’s making sure you understand the accounting nuances or the key drivers of historical financial performance, you’re making a significant investment and should have all of the facts.
When should we engage a provider?
In the increasingly competitive M&A landscape, buyside diligence is not only a key part of your risk management process but an indicator of interest. Engaging a buyside diligence partner early shows you are serious in your pursuit, enables you to meet tighter timelines, and can give you an edge in highlighting key risks and opportunities in the transaction
Contact us for a confidential discussion of how we can assist you with your next platform or add-on acquisition.
