When acquiring or investing in a company, we need to keep our eyes open and know what we are getting into. Any decision-making based on inconsistent data that does not reflect the reality of the target company’s operations can result in enormous future losses for those involved in the transaction.
Therefore, Transaction Advisory Services in Delhi become indispensable in transaction processes between companies.
The main objective of the Transaction Advisory Services in Delhi is to identify the risks arising from a transaction and then plan and implement an appropriate mitigation strategy for each potential risk identified.
Due Diligence in corporate transactions analyzes the target business (company), the main Management Drivers of the operation, the product mix, and the industry in which the company operates. In addition, it also investigates historical trends in performance, liquidity, and projections.
In short, the process is primarily aimed at getting to know a company and examining the past, present, and future of the financial aspect of the business involved in the transaction.
The Transactions Advisory Services firms have the role of supporting companies during merger-acquisition, disposal, or restructuring projects and intervene by offering 3 types of services:
Transaction Support
This department is responsible for drafting the “Due Diligences” in the context of disposals or acquisitions. This consists of writing a complete report which mainly includes analyzes of the company’s performance, the various risks identified as well as the construction of its business plan.
The report also contains a so-called “normative” analysis, in other words, they do what is called “the audit of the transaction”. As you will no doubt have understood, this exhaustive report will allow the buyer to have an overview of the target company and thus be able to estimate its value.
Valuation & Business Modeling
This department provides expertise in terms of financial valuation when the top management of a company seeks to estimate the value of one or more assets or of the company itself. It also supports clients on purely financial modeling topics such as the creation of business plans.
Restructuring
The “Restructuring” department offers strategic support allowing a company in difficulty:
- To improve its cash management,
- To reorganize/restructure or even to find solutions to implement in the event of financial difficulties.
In practice, this translates into the modeling of a cash flow plan and the implementation of a restructuring plan.
As in Mergers and Acquisitions, Transaction Advisory Firms in India can support:
The buyer (“Buy-side”) who wishes to acquire a company or an asset. The Transaction Services team will write a financial report for the buyer to present to him very clearly all the financial risks related to his future acquisition.
This report will therefore allow him to protect himself against possible risks through specific clauses but also to make a reasoned purchase.
The seller (“Sell-side”) who wishes to sell a business or an asset. The Transaction Services team, in collaboration with the seller, will draw up a financial report on the business to be sold. This report will then be sent to the buyer and will aim to remove all gray areas and provide a clear analysis to reassure him about his acquisition.
The transaction advisors will also optimize the transfer price as much as possible to allow the client to sell at a high price.