Sellside Diligence
Every buyer is going to take a deep dive into a seller's financial results through a buyside “Quality of Earnings” (“QofE") analysis, and the best practice is to prepare for that process and more via sellside diligence. Benefits include:
Setting the stage for conversations about value by highlighting positive growth trends, crafting the narrative on potential issues, and appropriately documenting adjustments to EBITDA.
Having an experienced advisor to stand beside you throughout the diligence process speeding answers, unifying messaging, ensuring consistent and reconciled information in prepared materials, and avoiding pitfalls from unclear or inaccurate presentations to buyers.
Understanding and helping to mitigate shortcomings in historical financial reporting.
Identifying red flags before the late stages of a sale process when buyers are deep in diligence.
Our sellside diligence approach begins with a detailed review of your financial results alongside discussions with you about key aspects of the business which will drive value for buyers, all supported by data. We then document our conclusions in the format which is right for the situation. This deliverable can range from light Excel databooks to support your financial models to full, standalone PowerPoint reports used to increase buyer interest and knowledge of your business.
Sellside diligence is a core focus at Trialta. After spending years at an investment bank, we are experts at becoming an integrated part of the team. We work hand-in-hand with your bankers and other advisors to ensure alignment on key deal issues and timelines, and that focus carries through to closing the deal. We particularly like helping founders – nothing is more rewarding than helping an owner realize a successful transaction, particularly for the first time.
frequently asked questions
Who needs sellside due diligence support?
Whether you are a family business owner looking for an exit or a private equity backed portfolio company, sellside diligence is a best practice for all sellers, allowing you to get prepared for a sale and craft a succinct, data backed story to maximize value.
Why is sellside due diligence important?
Buyers are likely to hire their own third-party providers to dive into various silos of your business (e.g., financial, market study, insurance, HR, etc.). Having a sellside due diligence team not only lets you set the tone on your value proposition and risk areas but lends you the support of an experienced team so you can focus on your day-to-day operations. An experienced sellside team also facilitates consistent messaging between the investment bankers, due diligence teams, and management to maximize exit value and reduce friction in the sale process.
Why is sellside due diligence important?
Earlier in the process is best. We often are engaged by our clients to begin the sellside due diligence process prior to retaining an investment bank. However, at times this is not possible (you may not even know you need to do this until they tell you!). The more you can do before buyers start asking questions, the better.
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Contact us for a confidential discussion of how we can help you maximize value on your most important transaction.
