Diligence | Transactions | Corporate Finance | FTI Consulting
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Diligence

FTI Consulting’s comprehensive 360-degree approach to due diligence, focuses on providing a buyer or seller with not only a view on financial diligence, but also across the commercial, operational, IT, tax and human capital aspects of a business. Our expert action-oriented team can assist in:

  • Integration and separation assessments, synergy and standup cost identification (including costs to achieve);
  • Strategic communications to investors, lenders, vendors, customers, employees, and all vest entities in the transaction;
  • Analysis and determination as to the level of sophistication of IT and Technology systems;
  • Creation of carve-out financials that incorporate the new cost structure while leveraging potential Transition Service Agreements ("TSA"); and
  • Perspective on relative human resource policies, compensation models and legal requirements.

Our Service Offerings

  • Financial Diligence includes quality of earnings, working capital requirements, net asset analysis, sales/margin analysis, short-term forecast analysis, synergy analysis and carve-out considerations.
  • Tax Diligence involves review of the pre-closing tax profile and tax return filings to identify and assess historic tax risks regarding international, U.S. federal, state and local tax matters. Work undertaken during the tax diligence engagement also allows our team to effectively advise our client as to tax-efficient structuring for the acquisition and operation of the targeted business.
  • Commercial Diligence provides market and company assessments, including customer interviews, market size, market share growth and strategy, competitor assessment and assessment of KPIs.
  • HR and Benefits Diligence includes analysis of health and welfare plans, pensions and post-retirement medical plans, compensation and equity plans, employment agreements (e.g., change in control, retention, etc.) and other core responsibilities of HR organizations.
  • Technology and Cybersecurity Assessments evaluates the overall IT infrastructure and application landscape in addition to cybersecurity risks or opportunities.
  • Operational Diligence includes qualitative and quantitative assessment of operational requirements, risks, opportunities and red flags.
    • Integration and Synergy Assessment identifies, quantifies, and prioritizes revenue and cost synergies for a transaction.
    • Separation and Stand-up Assessments reviews and evaluates critical activities and costs for sellers or buyers to separate and/or stand up NewCos.
    • Legal Entity Structuring, Purchase Agreement and TSA Review evaluates and advises on key transactional and operational elements of the transaction purchase agreement.
  • Announcement Strategy and Leak Mitigation develops pre-deal communication plan and announcement strategy for sellers and/or buyers.
  • Deal Perimeter and Negotiation Advisory provides pre-deal client support, including valuation, pricing strategy and negotiation tactics, as well as identifying levers to drive synergistic value and negotiating currency.

Industry Expertise

Our deep bench of senior-level industry practitioners understand the industry-specific challenges, opportunities and competitive landscapes that underpin a deal. Leveraging decades of transaction experience, we bring on-point industry expertise and a team sized to our clients needs.

  • Aerospace & Defense
  • Automotive Manufacturing and Distribution
  • Chemicals
  • Energy, Power and Products
  • Financial Institutions
  • Food and Beverage
  • Healthcare & Life Sciences
  • Hospitality, Leisure and Gaming
  • Industrials and Manufacturing
  • Insurance
  • Mining and Mining Services
  • Real Estate & Infrastructure
  • Retail & Consumer Products
  • Telecom, Media & Technology
  • Transportation and Logistics
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