Any business seeking to make an acquisition must understand not only the current performance of a potential target but also how this target is performing in a specific space and how they are positioned in relation to its competitors and current market drivers.
Without understanding the unique characteristics of an industry, it is impossible to arrive at a realistic valuation without understanding where to further investigate.
Many factors influence the current state of a market and today they are moving at a rapid pace. Products and Services are becoming obsolete at a breathtaking rate. Other factors such as the targets current state of technology, major customer relationships and potential legislation must be considered for their impact on the future value of an acquisition. Earnings must be investigated, Results need to be validated against what the industry will bear. Future earnings need to be base lined and projections broken apart to understand the revenue mix and contribution margins. Is this what we see in the general market? Does this make sense? Do I have sponges in the pipeline?
ABS’S due diligence services are unique in that we bring extensive industry knowledge, extension financial analytics and a technology capability that allows us to dig deep in the data and build our own conclusions.