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Mergers & Acquisitions Transaction Services: Engineering Design and Assembly Business

Mergers & Acquisitions Transaction Services: Engineering Design and Assembly Business



September 8, 2020

CHALLENGE

Client with limited resources needed to conduct financial analysis and reporting process to determine closing price of acquisitions.

Existing challenges included:

  • Unsophisticated Target with poor quality financial data which inhibited client’s ability to assess performance and ultimately valuation.
  • Lack of financial and human resources at Target to address financial reporting and record keeping deficiencies.
  • Time sensitive process upon which to provide client with a report and recommendations on the transaction.

HOW MAZARS HELPED

We assembled a team of skilled M&A professionals who were experienced in financial planning and process.

Solution:

  • Perform a targeted analysis into core accounting processes of the business, primary being percentage of completion accounting, to address inaccuracies distorting results.
  • Analyze balance sheet for possible working capital considerations that would affect closing purchase price.
  • Provide suggestions to correct and strengthen the quality of financial reporting.

THE RESULT

  • Provided client with accurate view of the financial results of the business, and recommendations for go-forward financial reporting improvements to implement.
  • Informed client of various accruals and deposits that should be included in the debt of the Target, as opposed to net working capital, resulting in a decrease in purchase price of the transaction.
  • With accurate financial information and clear visibility into accounts, Client was able to close on the transaction

CONTACT

CHRIS MOORE | PARTNER, MANAGEMENT & TECHNOLOGY CONSULTING

(P)443.838.3050 | (E) chris.moore@mazarsusa.com

 

STEVEN KOPS | PARTNER, FINANCIAL ADVISORY SERVICES

(P)212.375.6852 | (E)steven.kops@mazarsusa.com

 

KEVIN KOCIS | DIRECTOR, MANAGEMENT & TECHNOLOGY CONSULTING

(P)623.628.2112  | (E)kevin.kocis@mazarsusa.com



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