Services

Acquisitions

Acquisitions

Our acquisition advisory combines many aspects of the corporate finance discipline, including due diligence, balance sheet and operations forecasting, valuation, and debt and equity financing. We have performed successful acquisition advisory for more than 100 bottlers in the Coca-Cola and Seven-Up bottling systems, five Major League Baseball teams, and two National Hockey League teams.

Our success in acquisition advisory draws on our negotiating, forecasting, valuation, and financing abilities. The key to successfully providing middle market companies with the highest quality corporate finance services is our core team dedicated to providing “Wall Street” corporate finance services to “Main Street” companies. While we tailor our acquisition advisory services to the needs of every one of our clients, our disciplined process of advising clients in acquisitions remains the same and includes:

  • Identifying candidates,
  • Researching relevant industry and economic conditions,
  • Reviewing and analyzing the performance of a target,
  • Performing an in-depth valuation analysis for both fair market value and investment value,
  • Preparing of detailed financial forecasts,
  • Negotiating with targets,
  • Drafting and amending offers
  • Arranging debt and equity financing,
  • Drafting a purchase agreement,
  • Performing due diligence, and

Our experience with clients over a wide range of industries in hundreds of transactions totaling more than $17 billion are a testament to our ability to aid companies growing through acquisition.

Financing

Financing

Debt or equity financing are often used to fund mergers and acquisitions. An appropriate balance of equity and debt allows business owners to take advantage of short-term opportunities while maximizing long-term value. Accessing capital in the private equity and debt markets can be a daunting task. Private capital markets today are fragmented, complex, and constantly evolving. Management can be weighed down with a multitude of issues, including:

  • Pre-financing valuation,
  • Most appropriate instrument or security (common stock, preferred stock, convertible preferred, subordinated debt with warrants, etc.),
  • Seeking the most economical capital provider,
  • Covenants and restrictions ranging from required financial ratios to limitations on capital expenditures, and
  • Evaluating and understanding the pros and cons of different proposals.

Our experience with clients over a wide range of industries in hundreds of transactions totaling more than $17 billion are a testament to our ability to aid companies growing through acquisition.

Due Diligence

Due Diligence

DCF professionals have more than 40 years of experience conducting buy-side due diligence for transactions. Our professionals can aid acquirers in understanding the financial situation of a target by performing an in-depth analysis of the company’s financial statements and the proper adjustments necessary to reflect the economic reality of the transaction. However, DCF’s due diligence team goes far beyond that – looking beyond the numbers to identify the underlying financial, operational, and external issues affecting the business and the transaction.

A comprehensive due diligence process can lead to more successful closings and a reduced risk of overlooking a critical fact of the target business. Our process involves intensive investigation into areas including:

  • Working capital and capital expenditure needs,
  • Grade of revenues, earnings, and cash flows,
  • Financial reporting and disclosure concerns,
  • Purchase price adjustment means,
  • Regulatory and operational affairs,
  • Sarbanes-Oxley compliance and internal control framework,
  • Effect of local, state and federal tax on the financial model, and
  • Condition of balance sheet, reserves, and unrecorded liabilities.

While our primary focus is the quality of information used in developing an acquisition offer, we routinely identify internal and external factors, such as competitor information or regulatory changes, that will be beneficial to the buyer post-closing.

Our due diligence experts are licensed CPAs with experience in hundreds of due diligence projects in a vast array of industries that includes healthcare, financial services, real estate, entertainment, hospitality, manufacturing, government, non-profit, construction, and professional sports franchises. We believe DCF’s significant transaction experience and access to one of the nation’s leading regional accounting firms optimally positions us to serve the due diligence needs of growing businesses.

Contact Us

Ask us questions or share your stories with us

[recaptcha]

Decosimo Corporate Finance, LLC

819 Broad St. Chattanooga, TN 37402

(423) 266-4000

Monday – Friday: 9AM – 5PM

Email

General Inquiries