Digital transformation agency

Client

Leading International Media & Communication Group

Context / Objectives

The buyer, a leading international Media & Advertising Group is expanding its footprint in Europe via an active acquisition strategy.

The buyer has identified a London based independent consultancy firm specialized in Digital Transformation. The agency is very young and has grown at a very fast pace over its first few years of existence.

Our client wants to evaluate the risk related to the acquisition, confirm validity of information provided in developing the acquisition proposal and assess a normal level of tangible net assets for the business.

Mission

The Operations & Commercial due diligence is taking place during the Covid-19 crisis.

Our client is looking for industry experts having a strong operational backgrounds who will be able to conduct a standard financial due diligence but also fully review the operations of its target. 

The work has been articulated around 4 major areas:

• Get a clear understanding of the target operating model and evaluate its key business processes: client management, HR management, finance, new business, pricing, client/supplier contracts management, budgeting/forecasting, revenue recognition, accounting policies, back-office organisation…
• Review the last 3 fiscal years financials and highlight any risks.
• Evaluate the target ability to reach its current year forecast and deliver the following year budget. A special focus need to be made on the revenue assumptions.
• Understand how the Covid-19 crisis will impact the target business activity.

Results

• Due Diligence report with full analysis.   
• Operational post-acquisition integration recommendations presented to the client.
• Presentation of the report during the deal closing meeting.