FULL CPA DUE DILIGENCE AND COMPREHENSIVE BUSINESS ANALYSIS

We believe that a business’s worth should not be just based on the financials alone, which is what almost all appraisers use. It must be based on how viable the business is? Will it survive in this economic condition? Does it have some uniqueness to it that will assist it to compete successfully in a highly competitive market? Financials are a representation of the past and only give a possible indication of the future. You need much more information than this. The comprehensive business analysis uses not just the information you provide but also leverages our experts’ knowledge about the business in general

and the business you are considering to provide a holistic estimate of a business worth.

After you have a signed contract, preliminary due diligence has been completed and you have negotiated a new price. The negotiation of a new price happens when you turned up surprises you did not expect and these surprises lower the value of the business to you. You are still not done with your due diligence at this point in time. You can’t close an escrow based on preliminary CPA due diligence, because the only things that has been reviewed are the obvious things that have caught in your review. What these items are will vary based on the experience of the accountant doing the due diligence.

Willard Michlin has been doing due diligence on hundreds of businesses for 22 years both in his capacity as a business broker and as a CPA. He is very good at finding where the bodies are buried.

This is where we look in detail at the general ledger of the company, and compare them with the income tax returns, payroll tax returns and brokers add back sheet of personal expenses deducted from the business, and added back to the profit of the company by the seller or broker. This is where the bank account reconciliations are done if it is determined they are needed. We also get the answers to “The twelve questions a buyer should always ask.”  Also any non-financial information not confirmed already is followed up on.

This information will then be broken down in detail and explained until you fully understand the workings of the business and all the red flags that we uncover. We will walk you through the process of obtaining all the necessary documentation and advise you on a suggested courses of action as the process takes place.

This service is unique to our firm and is not provide by any other firm to the best of our knowledge. When we are done with this process, it is conceivable that we may know more about this business than the seller.  At least we will work to know as much as the seller knows, including why he really wants to get out of his business? We have so much confidence in the quality of our service that we will sell a guarantee, for an extra fee, that you will not be defrauded by the seller, on businesses we research.