Empower informed decisions, safeguard against the unknown, and increase the likelihood of successful deal outcomes.
The deal process can be complex and full of unforeseen roadblocks for financial transactions such as business acquisitions, mergers, or investments. The due diligence process provides a comprehensive evaluation of a business or asset with the specific intent to audit and verify facts before the deal closes. An essential component of the Mergers and Acquisitions process, due diligence provides confidence in the transaction by uncovering factors that could affect the deal’s value.
Whether you are buying or selling a business or completing a merger or strategic investment, the due diligence process is critical to the success of your transaction. Having an experienced team on your side from the beginning can accelerate success, maximize value, and reduce unforeseen roadblocks.
Based on your objectives and situation, The CJ Group’s due diligence experts comprehensively appraise the target company or asset to validate transaction information. With deep buy and sell-side expertise across many industries, we’ll help you identify and uncover hidden opportunities, minimize risks, create additional value through negotiations, and structure a tax-efficient deal package that maximizes your overall deal value.
CJ’s rigorous due diligence process increases transparency, builds trust, and facilitates a smoother transaction process through these due diligence tenants:
The CJ Group provides financial expertise and experience in analyzing a target’s financial health through deeply examining financial statements to spot trends, identify missed opportunities, and uncover potential risks.
Through an exhaustive analysis, we uncover hidden liabilities, potential legal or compliance issues, and financial risks that could impact the value of the transaction. Identifying these risks ahead of time can save significant resources and potential future problems.
As an independent third party, our unbiased perspective and analysis of the target opportunity help clarify critical business questions and facilitate timely and informed decisions.
The CJ Group’s comprehensive due diligence process provides deep insights, potentially leading to a stronger negotiating position and better deal terms.
Findings from the due diligence process and analysis often provide insights that equip leadership teams with valuable information for future strategic planning and decision-making.
Our robust process and deep data analysis provide confidence in making an informed business decision based on a thorough understanding of all relevant factors.
QoE, or Quality of Earnings due diligence, focuses on the sustainability and accuracy of a company’s earnings and helps identify potential risks and opportunities that could impact future earnings. Going beyond what is reflected in EBITDA or net income, we’ll dive deep and analyze revenues, costs, working capital, non-recurring items, and adjustment items. The result is a detailed view of normalized earnings that can facilitate a more accurate valuation and negotiation.
A thorough and objective analysis of an organization’s assets helps decipher actual value and earning potential. It ensures that reported asset values are accurate and free from hidden issues that could impact the valuation of the transaction. Our comprehensive analysis includes tangible and intangible assets, the quality of receivables, and an evaluation of inventory. Additionally, current and long-term liabilities, contingent liabilities, off-balance-sheet obligations, and tax liabilities are analyzed to help identify potential financial risks.
A comprehensive evaluation of the target company’s financial health provides a transparent view of the organization’s financial performance and stability through analysis of the income statement and balance sheet. Cash flows are analyzed to determine cash-generating capacity and liquidity position, and a historical review and forecast analysis help identify trends, cyclical fluctuations, and potential areas of concern. Debt and financing health is assessed by analyzing existing loans, leases, and other financing arrangements.
The CJ Group’s tax due diligence process is an in-depth examination of the different types of taxes the company must pay and uncovers potential issues such as unpaid taxes, penalties, interest, or under-assessed obligations. Key components include compliance, tax attributes such as carryforwards or credits, and tax positions, including transfer policies, provisions, and existing disputes or litigations. Additionally, The CJ Group’s tax experts provide guidance on the tax implications of deal structure and suggestions for alternatives to minimize the tax burden.
Contingencies assessments minimize post-transaction challenges by deeply reviewing potential risks or liabilities. Examples could include legal contingencies, such as potential lawsuits or contract disputes; financial contingencies, such as future obligation leases; operational contingencies, such as loss of key personnel or supply chain disruptions; or environmental contingencies, such as non-compliance with regulatory standards.
I feel they’re very competent. Do I feel good about the work they’re doing? Absolutely. Do I feel safe? Absolutely. Excellent service, we trust them. Getting correct answers to questions on a timely basis. Getting our tax returns filed on time. Reliability. Credibility. Honesty. They have all the things you want in a company you really rely on to support your company.
A few years ago, The CJ Group took over our six employee benefit plan audits. With CJ’s efficiency and expertise on employee benefit plans, I don’t have to worry about audit compliance anymore. They provide value by making the process seamless for me and my staff, keeping us current with DOL/IRS regulations to ensure compliance, and all for lower fees than we were previously being charged. I would highly recommend The CJ Group for employee benefit plan audit needs.
We get excellent service from The CJ Group; we trust them. We get correct answers to our questions on a timely basis. We have a lot of legal entities, and they keep track of that for us. They’ve benchmarked our business against other businesses in similar industries so we can see where we stand with our leverage ratios, working capital, inventory months on hand, and receivables. We can see where we are and where we need to improve.
Working with the CJ Group has truly transformed our business. Their expert guidance helped us rethink our approach to profitability. CJ provided insights into our financials and gave us the tools to analyze our operations from a strategic perspective. Thanks to their recommendations, we were able to streamline processes, improve cost efficiency, and ultimately turn our company around to healthy profitability. The impact has been huge, and we are now on a stronger financial footing. We couldn’t have done it without their support.
The CJ Group, over the past 20 years, has helped our company with expansions into new marketing, management of rapid growth, negotiations with lenders, and implementation of tax strategies inside our business, including LIFO, cost segregation, and entity formation. They are an active advocate and advisor to our business, as well as providing the technical support and advice we need from our accounting firm. We appreciate them for going that extra mile that quite frankly has become a rare commodity today.
Let us show you how we can deliver exceptional outcomes for your business.
Frisco Office
Fort Worth Office
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Frisco Office
Fort Worth Office
