Question: Now that I want to buy a business, their previous accounting system was 2 books. So, thanks to the consultant, is there any basis to determine the lack of transparency of the selling company?
Answer: Thank you for your trust and send your question to ISAI, after doing research we would like to answer your questions as follows:
In order to minimize risks in the process of merger and acquisition, buyers need to accurately research information, analyze potentials and make forecasts about possible risks from the selling enterprise.
– Checking the accuracy of information of businesses selling: Most of the information, bookkeeping reports will be hidden so that the seller can get the most benefit. The first rule of thumb to make a sale is to check the accuracy of the information provided by the seller. In order to operate smoothly you need legal agencies to receive regulatory guidance and they will help provide important and necessary information about the business.
– Risk analysis and forecasting: To be successful in an M&A project depends a lot on clear plans, strategies and warning of risks and anticipation of owners. Therefore, buying businesses need to carefully consider bad debts that are not included in the books, assets are not depreciated while most of them have been damaged or cash flows due to the sale of fixed assets rather than selling. goods … along with that need to find out about the risks of human resources, there are deals that key staff have left after the merger.
However, in order to help the buyer to identify the lack of transparency of the selling company, the seller needs to rely on an intermediary, with expert advice. This way will help buyers gain knowledge about the law, stages in M&A such as valuation, restructuring … Not only that, they will also give you advice to avoid legal risks in M&A implementation process. If you use ISAI’s services, after completing the deal, a team of experts will assist with consulting on business restructuring, thereby attracting more investment, more solid corporate finance, out the business strategy after the merger.
