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Due Diligence and Transaction Support

Due Diligence and Transaction Support


Financial Due Diligence

Acquisitions have the potential of bringing significant rewards but also present major risks and challenges. Successful M&A deals start with a thorough understanding of historical results and financial projections. We are a solid alternative to Big Four consultants for medium or smaller transactions. Our consulting and financial due diligence work in Romania typically covers:
  • Identification of business drivers and key risks
  • Income statement analysis
  • Assessing quality of cash flows
  • Understanding assets and liabilities
  • Assessing reliability of financial projections
  • Understanding and assessment of management estimatesAssessment of compliance with regulatory and reporting standards and frameworks
  • Identification of other matters that have the potential to impact the transaction price

ASCENTOR’s team of experienced consultants tailors the financial due diligence approach to meet any user needs. As such we can prepare customized reports for financial (private equity or financial investors) and strategic buyers, vendors or towards public (as part of a stock exchange listing). We have extensive experience in working on complex transactions in Romania in various industries including healthcare, energy, technology, IT, industrial services and utilities.

Commercial and Market Due Diligence

When making an acquisition, investors look into critical matters such as value creation, industry attractiveness and target’s competitive positioning. To address these elements at ASCENTOR we analyze target’s:
  • Markets – understand the business and relevant markets, asses future market trends and understand key business drivers
  • Customers – analyze the customer base and business performance against customer expectations
  • Business plan – asses reliability and achievability of business plan and forecasts assumptions
  • Value chain – understand and assess the commercial viability and prospects of the acquisition target
As part of the process our consultants will also approach industry specialists, associations, customers and competitors to understand their perspectives.

IT Due Diligence

Target’s IT infrastructure and organization are critical elements of a deal, but their impact is sometimes overlooked. Moreover the integration costs of the IT function across target and acquirer’s entities can have a significant impact on the value and effectiveness of the transaction. The main aspects covered by our IT due diligence approach are:
    • IT projects
    • IT assets (business applications, hardware, network and communication)
    • Organization of the IT function
    • Organization of the IT function
    • IT security
    • IT strategy, operational and capital budgets
    • Human Capital
    • Aspects related to integration of target and acquirer’ systems
    • IT operations

Post Merger Integration (PMI)

We at ASCENTOR believe PMI plans should be created prior to the merger and adapted to the post merger realities. The initial planning stage should identify significant changes (e.g. sales objectives, remuneration models etc.) needed to implement the acquirer’s future business model. During implementation (post merger), once the real issues are known, the business model and PMI plan should be revised and refined.
During all the stages, our advisors will work together with client staff to identify effective ways to exploit opportunities generated by a successful integration. At ASCENTOR we make use of methodologies to minimize the risk of the integration process.