Sale of Swiss flexible packaging companies Elag Verpackungen AG and Elsaesser Verpackungen AG to Ampac, USA
Role of Proventis Partners AG, Zurich: Exclusive financial advisor to the owner throughout the sales process
Sale of proofreading, adaptation and translation company WIENERS + WIENERS GmbH to Caldec Beteiligungen GmbH
Role of Hartmann Zillmer Corporate Finance, Hamburg: Exclusive advisor to the owners throughout the sales process
Acquisition of Medical Biomaterial Products GmbH by a family holding through a Management Buy-In
Role of Hartmann Zillmer Corporate Finance, Hamburg: Advisor throughout the acquisition process and realization of acquisition financing for the buyers
Private Investors acquire 100% of the shares of medi-cine medienproduktions GmbH from CompuGroup Holding GmbH
Role of von Proventis Partners Munich: Exclusive buy-side advisor in the acquisition process
Reviva AG acquires the majority of the shares of the Swiss tradition company Faude & Huguenin AG Medals and coins
Role of Proventis Partners Zurich: Exclusive sell-side advisor and support of restructuring in the Board of Directors
Transactions often deal with large investments. Hence, opportunities and risks associated with the investment should be analyzed carefully. Financial Due Diligence is always made for a precise and individual object: shares of a business, a group of assets or a combination of both shares and individual assets. It can be done from either the buyer’s or the seller’s point of view. To be more precise, during a Financial Due Diligence the areas financing and accounting, historic as well as current financial and target figures, control systems and past business incidents are taken a close look at. Apart from that, a Financial Due Diligence can also provide crucial insights about past and future earning power, profitability, balance and capital structure as well as capital requirements or free liquidity, respectively. Furthermore, the main value drivers of a business will get analyzed.
Applications of Financial Due Diligence
Business model
Asset, financial and return situation of the past (three to five completed fiscal years usually) as well as the financial results of the running fiscal year; critical: financial risks that could be relevant in the future
Future expectations, e.g. by means of budgeting
Business planning: risks in case of incompleteness or implausible development
Stumbling blocks
If the potential buyer spots any risks this will have an impact on the purchase price or any guarantees / warranties. That’s why you should think about alternatives or recommendations in case of any potential risks. That way a structured purchase price payment can be used as a stop-gap. In order to avoid any overlapping, financial due diligence should be well coordinated with other due diligence assessments (legal, tax and commercial due diligence).
