Due Diligence Assessment
When there is potential risk involved in a potential investment, a due diligence assessment is essential to the pre-funding commitment. The biggest investment a lender or creditor can make in a business is taking the time to determine the key aspects of the business environment, from the day-to-day operations practices, to human resource considerations, to the necessary practices to maintain customers. A due diligence assessment provides the answers to these questions, allowing creditors and lenders to decide if they are willing to proceed given the existing factors. As such, it is a helpful tool in making a more informed credit or investment decision.
Due diligence assessments also provide information which can be used when crafting lending or investment instruments for the benefit of lending or investing entities. Although the structure of each engagement is unique, projects typically focus on answering the following questions:
- Market positioning, including competition, capabilities, market dynamics by segment
- Execution capabilities, including strategy, management capabilities, cost structure, customer service, quality, product innovation
- Attainability of business plan and projections
- Cash flow forecast, quality of earnings and debt service capabilities
Focus Management Group rapidly assesses a company to identify key issues and drives; drawing conclusions regarding the advisability of the lender/investor to proceed with the transaction under consideration.
Due Diligence Services for New Opportunities
Focus Professionals can support clients by providing financial and operational due diligence reviews to help assess possible risks associated with an potential acquisition target. Our services in this area include:
- Validation of historic and projected EBITDA
- Sensitivity analysis re. Financial Projections
- Evaluation of Business Model
- Analysis of Organizational Structure
- Delivery of Comprehensive Report of Issues
Due Diligence for Capital Calls
Focus offers due diligence for capital calls by providing in-depth assessments of proposals regarding the deployment of additional capital to support portfolio businesses. We can determine if everything has been done to maximize cash generation.
Better information leads to better investment decisions. Our due diligence process is designed to provide a 360 degree overview for a portfolio business. We create a comprehensive synopsis of the company’s current situation and forecast the company’s plans for the future.