Consulting

DUE DILIGENCE

Gettry Marcus assists our clients and their attorneys in identifying potential candidates for merger and acquisition purposes. For clients seeking an exit strategy, we provide the owner with an understanding of the strengths and weaknesses of the business prior to the transaction. For clients seeking growth through acquisition, we provide guidance in screening potential target companies, and provide financial and investigative due diligence services.

We maintain active roles in many professional organizations in our disciplines, and contribute articles to nationally recognized peer reviewed journals and publications. We have attained the highest level of credentials within our profession and serve as national instructors and lecturers to various professional groups, including state CPA organizations, on various business valuation and forensic accounting topics.

Services Offered

  • Business valuation
  • Exit strategy planning
  • Financial benchmarking
  • Financial forensic investigations
  • Financial modeling
  • Industry analysis
  • Investigative services
  • Mergers and acquisitions
  • Transaction consulting

 

Due Diligence Case Studies

Assignment :
On behalf of the buyer, we performed due diligence on the financial operations of a large retail store to determine its fair market value for a potential acquisition. Working with the client, we prepared projections of the company’s future earnings, including appropriate adjustments.

Result :
Based on our findings, we determined the seller’s asking price was 40% greater than the fair market value of the company, leading our client to withdraw from the transaction.

Assignment :
On behalf of the seller of a large medical equipment distributor, we prepared the company’s balance sheet at the closing date for the purpose of a purchase price adjustment. The buyer’s accountants prepared their own balance sheet to be used to calculate any purchase price adjustment which was based on an agreed upon amount of working capital.

Result :
The buyer’s accountants arrived at a balance sheet which reflected a shortage of required working capital totaling $1.5 million, while Gettry Marcus’s balance sheet reflected a shortage of $200,000. We were able to prove that our working capital calculation was correct and highlighted many errors and items not properly considered by the buyer’s accountants. Based on our findings we were able to save our client $1.3 million on the purchase price adjustment.

Assignment :
Gettry Marcus was retained by a major financial institution to examine the accounting books and records of a $100 million food distributor with outstanding credit obligations of $10 million.

Result :
Gettry Marcus uncovered $3 million of food products that were past the expiration date. This expired inventory was included in the collateral base calculation at full value. Based upon our findings, the financial institution revised its borrowing base formula providing itself with additional loan protection.

All Case Studies