Assessing a company’s financial position is a critical element of due diligence during a merger or acquisition.
Obtaining an accurate financial assessment of a firm helps mitigate potential risks not immediately obvious and provides useful insights into other areas of the company’s operational competencies.
A global competency with multi-national company experience
Blackhawk Intelligence’s financial assessment service can give you all the information that you need to make confident strategic decisions.
We operate globally and have the necessary local contacts in most instances to take our financial assessment investigations deep into international companies and markets. Our teams comprise individuals skilled in qualitative, quantitative, regulatory and technology processes and techniques.
Asking better assessment questions
Often, the key to gaining an accurate understanding of a company’s operating financial situation is knowing what questions to ask. Blackhawk can help you develop a better set of questions based on the detailed and exhaustive investigative work we conduct.
Our investigative work is based on the available financial statements and reports of the company, plus information we gain for other publicly available sources. We will also conduct interviews with key members of the company’s management where appropriate. In situations where the client does not wish for the company being analysed to be aware of this activity, we can undertake more covert activity to acquire data to assist in any decision making process.
Visible or covert financial assessment
In situations where the company of interest must not be aware of your investigations, perhaps where litigation may be pending, or where a financial assessment of a company is required to help determine the viability or scale of litigation, a more discrete approach may be needed. This type of covert assessment is also part of our pre-litigation support services.
Additionally, in M&A situations, the aim of our analysis is to help clients understand which parts of the business in question are contributing to profits, which activities are not viable and how much it will potentially cost to bring the business plan to fruition. Naturally, this affords more information that will be of use in other due diligence and risk management activities. The analyses are presented in the form of easy to use reports that senior management can use to base their decisions over which course of action to take.
The type of financial analysis that our risk management team performs
Among the different forms of analysis that we provide to support our financial assessment are break-even analysis, cash flow analysis, cost analysis and debt analysis. When analysing financial statements, we focus on liquidity, profitability, leverage and access to working capital.
Analyses are based on financial ratios and industry benchmarks. We seek to uncover trends from the business’s financial statements and use these as input to our recommendations for reviewing the business plan.
As well as considering historic and projected financial statements, the executive interviews we use help to uncover a business’s strengths and weaknesses. These are evaluated in terms of the effect that they will have on the business’s cash flow or value. Where interviews are not appropriate, we can perform in-depth traces on individuals to uncover background irregularities that may assist in any litigation or assist in gaining deeper information as to how the company of interest is funded.
Gain insights into your own firm’s financial viability and opportunities
Financial assessment can also be aimed at your own company.
By gaining a thorough financial understanding of a business, it is possible for you and your decision makers to assess and identify opportunities for growth in your own company or supply chain. It is also a key part of due diligence when looking into whether acquiring another company would be of benefit to your business. Without an understanding of the financial strengths and weaknesses of your own business, it is all too easy to miss opportunities and take wrong turns.
Our analysis of a target business’ financial strengths and weaknesses should result in a high-level understanding that will maximise the company’s profitability or help to de-risk future financially related events by contributing to your overall business intelligence and risk management strategies. Our goal is to deliver information, insights and advice that will strengthen your business in the environment in which it operates.
Who can benefit from Blackhawk Intelligence’s financial assessment service?
Given our strengths and resources across the globe, the risk management team at Blackhawk Intelligence can handle most corporate financial assessments. We are also highly capable in providing such assessment in a variety of business situations, including company listings, mergers and acquisitions, corporate restructuring and funding scenarios.
If you have any questions about our financial assessment services, please don’t hesitate to get in touch on +44 (0)20 8108 9317.