Hood & Strong has experience conducting financial due diligence to help facilitate successful mergers and acquisitions. Working with both buyers and sellers, we analyze target company data to identify historical and projected financial and operating trends, working capital considerations and the quality of earnings. We are focused on helping clients reduce the risks of any transaction by providing technical, financial and operational analysis to support strategic decisions. We offer a suite of services, including evaluating potential acquisition’s financial reporting systems; assessing collateral, accounts receivables, inventory and cash flow; and identifying exposure areas to avoid or reduce value.
Our team has the experience and knowledge to uncover potential M&A opportunities and reduce surprises and transaction delays.
Buy-side due diligence
We work with search funds, independent sponsors, private equity funds, and strategic buyers in acquisition due diligence. Buy-side due diligence includes: reviewing financial statements to analyze the quality of earnings and working capital; analyzing key risk areas; assessing the purchase price; performing tax due diligence; assisting in acquisition structure that optimizes your needs, such as tax efficiency; and providing information about the target company’s tax, compensation and benefit situation.
From valuing the opportunity and understanding all tax implications to obtaining financing, and everything in between, we can support you at every stage of the process to help you achieve success.
Our due diligence approach is collaborative, responsive, and unique. With every engagement, we strive to:
- Maintain active, strategic project involvement from experienced partners.
- Focus and prioritize in critical areas to help manage the timeline and cost effectively.
- Communicate directly and involve you in the process to address issues in a timely manner.
- Leverage our resources through our alliance with RSM and the network of RSM International firms.
- Recommend entity and transaction tax structures that maximize value for buyers and sellers.
Sell-side due diligence
We work with owners and investors directly, or through investment banks and intermediaries, in preparing the business for a potential sale. Sell-side due diligence involves identifying and addressing potential deal breakers early on and validating the accuracy of financial statements, including quality of earnings. We help owners and the investment bank anticipate and address issues and concerns from potential buyers, facilitating a smooth and timely process and thereby increasing the probability of a successful transaction. Specifically, the values we provide to sellers include:
- Prepare seller to develop appropriate negotiation strategies.
- Accelerate time to close and minimize surprises.
- Improve accuracy of financial information (especially when no recent financial audit has taken place), and prepare seller for document requests.
- Identify potential adjustments that could positively impact EBITDA.
- Increase possibility of competition between buyers.
- Minimize impact of taxes on proceeds by strategically structuring deals.
Post-transaction services and advice
Closing a transaction is only the beginning of the real journey. We continue to help buyers and operators post-transaction to ensure a successful transition and continued expansion and growth of the business. As trusted advisors, we help operators in the following post-close:
- Determining opening balance sheet and purchase accounting.
- Working capital adjustment and true-up.
- Evaluation, redesign and implementation of financial management and reporting systems.
- Assessment and redesign of policies and procedures.
- Audit and tax advisory and compliance services.
Tell us about the mentorship program at Hood & Strong.
When you first start as a new hire at Hood & Strong, you are paired up with a mentor, usually someone who has been with the firm for a while and no more than a few levels above you, and still feels more like a peer, someone that you would feel comfortable approaching with basic questions about the firm, or if you want to bounce ideas off someone. It’s nice to have someone checking in on you to see how things are going and if you need any help. As time goes on, you are then paired with a partner or a manager who sort of facilitates the same type of environment with you, but with more of an emphasis on career growth and development.
— Lauren Tung-Cook, Audit Supervisor
How did Hood & Strong stand out from competitors, and what factors led you to accept the position?
Before I accepted the position at Hood & Strong, I shopped around with other firms. But after a closer look, I felt like I would be a cog in the machine at some of these larger firms. Especially when I interviewed with the Big Four and other regional firms, there was a very cookie-cutter process to their operations, and I felt like I really couldn’t connect with that environment.
Hood & Strong’s firm culture was something that really distinguished itself from other competitors. I remember when I first interned at the firm, I was super shy. But there were so many team members, like managers and the seniors, who were actively making me feel welcome and comfortable. I just felt a really great sense of community.
— Deborah Lee, Tax Staff
What do you like about working at Hood & Strong?
I really like that I get to work one-on-one with partners on some engagements. Based on what I’ve seen at other firms, that’s very rare. Usually there are so many levels between team members and partners, so I really like that I can learn from them and ask questions. The partners at Hood & Strong really care about you and want you to be successful.
I think a job in public accounting, and specifically a job at Hood & Strong, is really good for someone starting their career. One big benefit for me was the firm’s Not-For-Profit Service Group, which affords team members the opportunity to work with organizations that make a difference. It’s nice to know that your work really does help an organization.
— Claudia Perez-Valdez, Audit Senior
After devoting years of your life to building your business, how do you successfully chart and navigate the next chapter of your career and ensure you reap your proper rewards? The key to a successful exit is developing a custom, comprehensive written road map or exit plan well in advance of a sale, buyout or leadership transition, and planning for both the financial and emotional aspects that are inherent in big change.
Hood & Strong’s team of certified exit planning advisors help business owners manage and focus on these complex tasks, advising and guiding you on ways to exit the business on your own terms and conditions in order to maximize value, mitigate tax implications, and ensure a smooth transition. We’re with you through every step of the process, from the time you decide to plan for an exit, through the close of the transaction.