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Due Diligence. What is it?

In a commercial context, it is the process of determining that information and representations are accurate, or at least reasonable in the circumstances. This process is generally conducted by an independent third party.

This financial due diligence may be required by a purchaser or minority investor in the course of a purchase/sale of a business or some form of business combination. It may also be required by investors and lenders in a (re)financing arrangement.

At GCSE we have developed the "art" of due diligence to a new level. Our approach is not simply to check for numbers and documents. We strive to find out what makes a business tick. What makes it successful? What are the critical areas that could adversely effect a business? This approach is vital, especially when preparing or reviewing management prepared business forecasts.

Whether working with a financial institution, lawyer or principal investor/purchaser, we believe that we are especially suited to provide this service to the small and mid market business sector, whether for the private owner managed business or for a public company.

A brief sampling of some of the transactions in which we have played a key role include:

  • two separate private placements in publicly traded food processing and distribution companies,
  • outright purchase of major machine shop and fabrication division of a large multinational corporation,
  • equity and subordinated debt investment in beverage operation, followed-up with subsequent merger with a second beverage processor, and
  • equity and subordinated debt investment in companies in the following industries:
    • foundry operations,
    • manufacturer and distributor of packaging and storage products,
    • photo-finishing lab, and
    • glass and plastic recycling.

We believe that our experience and our commitment to getting it right, along with our approach to each and every assignment makes us a well suited alternative to the national accounting firms, in the due diligence arena.