• +91 6366 092 750
  • rickysaraf@hillpineconsulting.in
  • Georgia 30228, USA
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Buy side due diligence

A buy-side financial and tax diligence in connection with the potential acquisition of a small-cap family-owned Indian operation for a listed Indian player to expand its customer base.

The business generated revenues of INR 300 million with a mid single digit EBITDA margin.

Key sticking/ pain points:

  • Lack of financial controls due to minimal segregation of duties as the owner was involved in all the financial processes;
  • Limited systems and automation with excel-based accounting and basic software like Tally without integrations;
  • Asset ownership ambiguities with the business assets being named in the name of owner;
  • Tax and regulatory exposure with non-compliance or delay in filing tax returns;

Hillpine’s value proposition

Data preparation & structuring

  • We established regular communication channels, including structured daily check-ins-to systematically walk the management through requirements, prioritized tasks, and provided real-time guidance.
  • Develop a clearer understanding of the business using the limited information available, to provide more insightful guidance to the client.

Deliverables

  • Integrated buy-side diligence comprising
  • Historical trading performance;
  • Current trading evaluation;
  • Underlying earnings/ WC
  • Net debt analysis
  • Tax due diligence
  • Provided different scenarios of negotiation which was fair and beneficial to the buyer financially and in terms of compliance.

Overall management of the transaction/project

  • Scheduling and steering discussions with the target;
  • Visiting the target’s site for better understanding;
  • Updating the client on the diligence progress and in case of any red flags