Here is the converted article in Markdown format:
Due Diligence in Financial Transactions: A Key to Success in French Polynesia
In the world of financial transactions, due diligence is a crucial step that can make all the difference in ensuring a successful deal. Whether you are divesting, acquiring, carving out, merging, integrating or doing follow-on acquisitions, it is essential to conduct thorough due diligence to identify potential risks and opportunities.
How We Help
Our pre-work engagement allows us to start integration work on Day 1, providing clients with a significant advantage. If the transaction is already underway or completed, we perform post-close net working capital analysis, serve in interim management roles, create strategic communications, and advise on HR policies, compensation, and labor requirements.
Financial Due Diligence
Our financial due diligence services include:
- Quality of earnings assessment
- Determination of working capital requirements
- Net asset analysis
- Sales and margin analysis
- Short-term forecast analysis
- Synergy analysis
- Carve-out considerations
We help clients assess historical performance, projected performance, review working capital trends, assess balance sheet exposure, identify separation challenges, and assist with sale negotiations.
Commercial Due Diligence
Our commercial due diligence experts help clients:
- Assess opportunities to capture revenue, new customers, and new businesses
- Provide market and company assessments, including customer interviews and assessments
- Evaluate market size, growth assessment, demand modeling, M& A competitor assessment, value proposition and brand perception assessment, and strategic partnership evaluations
Operational Due Diligence
To ensure the success of a transaction, it is essential to understand whether a company’s operations are appropriately structured to deliver on its business plan. Our operational due diligence practitioners conduct:
- Qualitative and quantitative assessments of operational requirements, risks, opportunities, and red flags
- Identify potential operational issues, such as deal value estimates not being achieved, costs to achieve being significantly higher than expected, anticipated synergy targets missed, and missing key transition service agreements
HR, Compensation & Benefits Due Diligence
Our HR, compensation, and benefits due diligence includes:
- Analysis of health and welfare plans, pensions, compensation and equity plans, employment agreements, and other core responsibilities of HR organizations
- Help clients answer questions such as:
- What existing people issues should be known before purchasing a business?
- What existing financial exposures within the compensation and benefit programs should be factored into their bid?
- How much it will cost to run the HR function effectively on a standalone basis?
- What savings levers are available within the HR function and benefits?
IT Due Diligence
When acquiring or selling a company, it is essential to know whether the IT infrastructure can deliver on the company’s business plan. Our IT due diligence services include:
- Comprehensive technology and cybersecurity assessments to evaluate the overall IT infrastructure and application landscape
- Cybersecurity risks or opportunities assessment
- Help clients identify and report current state IT strengths, weaknesses, and threats, as well as future state opportunities and requirements
Conclusion
Due diligence is a critical step in ensuring the success of financial transactions in French Polynesia. At FTI Consulting, we offer a comprehensive 360-degree approach to due diligence, providing clients with the expertise and guidance they need to make informed decisions and achieve their goals.