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Acquisition Services

EdgeStone's expertise enables us to provide an intelligent, in depth and independent assessment of your potential acquisition target.  We focus on all aspects of the business model - historic and projected financial performance, customer perceptions of past performance, sales and marketing assessment, financial systems review and Human Resource compliance assessment to give you a complete integrated picture of your acquisition target. 

The end result is that we provide a complete picture of the target company, and a specific list of recommendations to help you integrate your acquisition in a timely and efficient manner.

Our services include:

 

  • Due Diligence Planning and Implementation
    • We provide a detailed due diligence information checklist to the target company and work directly with the company to assure that the proper information is provided in a timely manner.
  • Business Plan Review
    • We review the detailed business plan for the target company and provide an assessment of the company’s competitive position and financial model.
  • Financial Assessment
    • We review the organizational structure and workflow model and provide specific recommendations to optimize performance.
    • We analyze the cost structure and provide specific recommendations to improve the bottom line performance of the acquisition candidate.
  • Contract Review
    • We review the target's major contracts with emphasis on:
      • Revenue recognition
      • Past performance
      • Revenue and profit forecast by contract
      • Detailed review of fixed price contracts
      • Contract liabilities and risks
      • Contract receivables
      • We review all leases and provide a summary of the financial commitments you are assuming.
  • Financial Forecast Analysis
    • We review the target company's detailed forecast by project/customer and identify key assumptions and risk areas
    • We identify the "Base Case" conservative forecast of revenue, profit and EBITDA based on the company's backlog and pipeline
    • We provide an assessment of target company's funded and unfunded backlog

                                                                                                            

  • Human Resource Assessment 
    • We review target company’s policies and procedures, focusing on:
    • Compliance of the company's existing policies
    • The Affirmative Action Plan
    • An assessment of company's EEOC compliance
    • A review of existing compensation system
    • Identification and review of Employment and Severance agreements
    • A comparison of target company's benefit structure with your company's plan
    • A review of the benefit structure and identification of areas for improvement and/or cost savings
    • A review of the target company's current 401k(k) plan and recommendations for integration with your plan

 

  • Sales and Marketing Assessment
    • Review of the new business pipeline and the key identified targets
    • Review of proposals submitted
    • Evaluate the business development process
    • Review of win/loss rates of major proposals
  • Customer Quality Review
    • Conduct confidential interviews with key and primary customers focusing on:
      • Duration of relationship
      • Past and current performance
      • Probability of future work