Region: Philadelphia
Industry: Manufacturing
Service Line(s): Risk Management Services
Performed due diligence procedures on an acquisition target for an operating company.
“AC Lordi worked with us to design an all encompassing due diligence checklist when we were looking into acquiring a target company. The AC Lordi team had the experience and resources to complete not only the financial portion of our due diligence work but also gave us insight into the tax, insurance and legal areas. The professionals we worked with at AC Lordi helped us to see the overall business picture of the potential acquisition which allowed us to make an informed acquisition decision.”
Hal. R. Harvey , President & CFO
Company Background:
Engineered Data Products (EDP) has been recognized as a design, engineering and manufacturing leader dedicated to innovative furniture and storage solutions for technical environments for more than 40 years.
Business Challenge:
EDP identified a potential acquisition candidate and required a partner to assist with financial due diligence.
AC Lordi Consulting Solution:
AC Lordi customized our standard due diligence procedures based on discussions with EDP and the target company, as well as a complete review of the relevant financial statements and footnotes. Additionally, we developed a macro-based interactive Due Diligence Checklist using Excel that was used by EDP to coordinate the entire effort, encompassing the tax, legal and other portions in addition to the financial aspects with AC Lordi’s guidance. We reviewed external auditor workpapers, presented reports of our observations, and performed “desk top” reviews of federal, state, local, and sales and use taxes.
Value Delivered:
We helped EDP to make the most informed business decisions regarding its acquisition strategy by laying out a big picture roadmap for the entire due diligence process and highlighting high risk areas. Our customized top-to-bottom due diligence procedures ensured that EDP’s financial evaluation of the target company was thorough, specific, and the most relevant analysis. We also provided our observations and suggestions on other areas including competency of accounting personnel at the target company and adequacy of systems both at current capacity and in consideration of scalability.