James Clinghan’s Post

The Importance of Thorough Due Diligence in Acquisitions 📌 Insight of the Day: When acquiring a company, conducting thorough due diligence is non-negotiable. It's not just about reviewing financial statements; it's about understanding every aspect of the target business, including its operations, customer base, and legal standing. 🔍 Why It Matters: Overlooking any part of due diligence can lead to unexpected liabilities or hidden costs post-acquisition. For example, you might discover outdated contracts or undisclosed legal disputes that can drain your resources. Ensuring every stone is turned before finalizing the deal protects your investment and helps secure more favorable financing terms. 🧠 Anything that can obstruct your ability to secure bank financing for the deal has to be mitigated or eliminated. #DueDiligence #RiskManagement #Acquisitions #BusinessStrategy #LeverageBanking

📋 Non Re-compliance Acquisitions for Resource Entities 📋 Recently we had Partner Jeremy Newman from Hamilton Locke come into the offices at Richardson St to give a presentation on the types of acquisitions ASX considers would or would not require an entity to recomply with the Listing Rules. The extremely practical and interactive session covered Listing Rules 11.1.2 and 11.1.3, submissions to ASX, the transaction-based comparison table used by ASX, timetable and structuring considerations, JORC reporting, Notices of Meeting, when to call a trading halt, etc. With quite a few of Belltree Corporate’s clients looking at new project opportunities, this was a relevant and informative session for everyone. Our team has experience with structuring acquisitions, compliance transactions, and working closely with lawyers and regulators. Give us a bell if you’d like to know more 🔔 #BelltreeCorporate #HamiltonLocke #recompliance #acquisitions #ASXsubmissions #compliance #companysecretary #financialmanagement #signhere

The #IASB is proposing changes that would result in companies providing more useful information to investors about acquisitions, including information about key objectives and targets and a company’s performance in subsequent years against those key objectives and targets.    👇 The images below illustrate what these disclosures might look like. These disclosures would follow a management approach—management would decide what objective(s) are critical to the success of the business combination, and what targets they will monitor to demonstrate whether those objectives are being met. 💬 For example, the targets might relate to the acquired business by itself, or if management expect to integrate the acquired business with an existing business the targets might relate to the overall integrated businesses.    These disclosures would not be required for all business combinations. Our earlier post explains which business combinations they would be required for: https://lnkd.in/ecxXySft  ❗ It’s important that all stakeholders provide feedback so that the IASB can determine whether these proposals would provide benefits that exceed their costs.    📨 We invite you to submit a comment letter here: https://lnkd.in/eJJFEGGt   Alternatively, if you are an investor and wish to discuss this further, you can contact us at investors@ifrs.org.    🔔 Comment period closes on 15 July 2024.    Access the full details: https://lnkd.in/gQ-dwE4E   #IFRSAccounting #IFRS #businesscombinations #acquisitions #equityresearch #financialreporting #IASBExposureDraft #disclosures #investors #investing

Transworld Business Advisers have helped thousands of business owners navigate their way through due diligence, and delivered countless successful deals. We are the largest network of business advisers involved in business sales and acquisitions in the World, so have seen many different issues emerge during due diligence planning or during due diligence itself. As a result, we are well equipped to help owners deal with unexpected problems. The project management experience acquired in so many deals also means we can help businesses run a due diligence process efficiently – helping them to keep running the business in the meantime. #transworld #businessbroker #businessbuying #buyabusiness #planning #businessselling #businessadvice #businessadvisor #IBBA

Here’s an example of the IASB’s proposed disclosures about acquisitions. Let us know what you think by sending in your comment letters.

Transworld Business Advisers have helped thousands of business owners navigate their way through due diligence, and delivered countless successful deals. We are the largest network of business advisers involved in business sales and acquisitions in the World, so have seen many different issues emerge during due diligence planning or during due diligence itself. As a result, we are well equipped to help owners deal with unexpected problems. The project management experience acquired in so many deals also means we can help businesses run a due diligence process efficiently – helping them to keep running the business in the meantime. #transworld #businessbroker #businessbuying #buyabusiness #planning #businessselling #businessadvice #businessadvisor #IBBA

There are many pitfalls CEOs may encounter when selling a company or raising institutional capital. LVP's specialists, well-versed in deal intricacies, provide invaluable guidance, distinguishing between typical and atypical scenarios, and highlighting what is reasonable or off-market. When sophisticated financial funds dominate as buyers, they can often create an unbalanced dynamic for sellers. LVP's experts unravel the complexities, revealing how their deal experience not only addresses challenges but also empowers CEOs to navigate negotiations with confidence. LVP's expertise ensures clients make informed decisions and avoid the pitfalls that may surprise the inexperienced. #CapitalRaising #MandA #Acquisitions #CorporateFinance

Due Diligence in M&A Due diligence has long been an integral part of any M&A (mergers and acquisitions) transaction. It is a comprehensive process of reviewing and analysing a business or asset to provide a complete picture of its status, potential and true value. The reason for 60% of failed deals is insufficient or poor due diligence that fails to identify critical issues. The objective of due diligence is to minimise the potential risks to the investor/owner. Obviously, it is more effective to carry out due diligence before investing. However, if it has not been carried out, it is appropriate to do so at a later stage. Hard due diligence, on the other hand, is aimed at assessing business indicators. It analyses key performance indicators (KPIs), corporate strategy, intellectual property, financial records, income and expenditure, marketing plans, capital investment and property status. They also review the legal aspects of property ownership, the use of intangible assets and the performance of key contracts. The main objective is to detect fictitious transactions and identify possible tax optimisation schemes. https://lnkd.in/dmcsnxuK #EifosHub #FinancialRefraction #FinancialManagement #EntrepreneurialEfficiency

Business Owners, if you are thinking about selling your business, I suggest reading my recent article on "The Importance of Organized and Accurate Business Records in M&A Transactions" at https://lnkd.in/eeUbzBjj. In the article, I discuss how well-organized and accurate business records are fundamental components that support every aspect of the M&A process, from due diligence to post-transaction integration. If you have any questions, I'm here to help. Feel free to contact me. #MergersAcquisitions #MergersAndAcquistions #BusinessOwners #TBG

Fast Facts | Mergers and Acquisitions A Precis on Earnouts in M&A Transactions - II Further to our last fast facts episode on earnouts where we explained what earnout is, highlighted some strategic considerations necessitating the adoption of earnout as the preferred pricing and payment arrangement in some acquisition deals and discussed some of its downsides, we have in this episode highlighted some of the key issues which parties must consider when structuring and drafting their earnout provision or agreement. #OlaniwunAjayi #OALP #MandAFastFacts #MergersandAcquisitions #EarnOutAgreements #EarnoutsinMergers #LegalThoughtLeaders #NigerianLawyers #NigerianLawFirmoftheYear