Transaction Services Analyst
Our organisation, working as a Transaction Services Analyst in Mergers & Acquisitions (M&A) holds a pivotal position in assessing target companies. Our main focus revolves around conducting Financial Due Diligence (FDD) to identify potential risks, adjust earnings figures, and ascertain the true financial stability of a transaction.
- Financial Due Diligence (FDD): Conduct an in-depth analysis of the target's trial balance, revenue sources, and expenses to ensure that the reported figures accurately represent the company's operations.
- EBITDA Normalization: Modify the target's reported earnings by considering non-recurring costs, one-time income, and adjusting management salaries to determine the genuine "Quality of Earnings" (QoE).
- Net Working Capital (NWC) Analysis: Examine historical trends in working capital to gauge the target's typical cash conversion cycle and establish a suitable NWC benchmark for the deal's conclusion.
- Debt & Debt-Like Item Identification: Reveal any hidden liabilities—such as underfunded retirement plans, unrecorded contingent liabilities, or deferred tax issues—that could impact the final enterprise-to-equity value.
- Tax Structuring & Compliance: Assess the tax implications of the transaction structure (for instance, asset versus stock purchases) to optimize future tax obligations and ensure compliance with relevant tax laws, both locally and internationally.
- Deal Deliverables: Prepare comprehensive Vendor Due Diligence (VDD) or Buy-Side FDD reports that outline potential synergies and critical risks that could affect the deal.
- Pre-Deal / Phase 1 (Target Assessment): Create or evaluate financial models to gauge valuation, analyze past financial performance, and draft pitch materials or teaser memoranda.
- Execution / Phase 2 (Due Diligence): Engage with target management, verify data room contents, and scrutinize forecasts to detect any financial irregularities.
- Post-Deal / Phase 3 (Integration): Support the Purchase Price Allocation (PPA) process to correctly assign value to assets and liabilities, while also ensuring that accounting policies are harmonized between the merged companies.
