Our Services
Transaction Advisory Services
Transaction Advisory Services
Our approach to Transaction Advisory is holistic and keeps in mind the accounting, tax, regulatory, legal, management and cultural aspects which come in any transaction advisory deal. We handhold the client in this critical and complex project by managing all the individual parts of the project and implementing them with a single-minded focus to make the transaction a success. Our support goes right up-to post transaction implementation.
Our subject matter experts diagnose tax issues which may arise during the execution and come up with the most tax efficient structure to encounter any such tax issues. In addition to this we also assist companies planning to sell their business, exit or raise capital and help them comprehend tax implications of a potential transaction. Also, our in-house experts support such companies in improving their EBITDA or working capital levels which can boost the valuation of their business or their after-tax deal proceeds. We ensure that accounting team of our clients planning to sell their company or take on a private equity investor, are fully prepared for their due diligence.
Among the services available through DVKS & Associates, Transaction Advisory Group are:
Business Valuation
Our business valuation experts bring extensive experience which helps our clients to understand the various factors that influence the business valuation which brings credibility & clarity to the complex valuation issues.
Financial, Tax & Legal Due diligence
Our financial due diligence services help the potential buyers or investors to assess and evaluate the factors which could have affected the past performance, and which will enhance the future results of the company. Here are some of the inclusions that are necessary for financial due diligence.
Examination of availability of assets and liabilities:
- Analysing the structure of assets as well as liabilities.
- Examining the current and non-current assets of the company or business, ascertainment of their value and availability
Analysis of quality of assets and liabilities:
- Examining the condition of the assets.
Economic analysis
- Examining the financial independence of a company.
- Analysing the profits and loss of a company of profits of the enterprise.
- Examining a company’s financial solvency.
Tax analysis
- Testing a company’s tax accounting system
Review of cost and management accounting system
- Examining policies related to accounting adopted by a company.
- Ensuring the correctness and veracity of financial statements.
Why is Financial Due Diligence required?
- Issues that could come up later during the transaction can be dealt with in advance with the help of financial due diligence.
- An informed decision/negotiation can be taken when both the parties are in tune with the financial position of each other.
- Financial due diligence provides flexibility in the use of deliverables.
- An unbiased opinion from third party helps in enhanced trust for both the parties.
- The potential future position of the entity can be ascertained which will be a crucial deal maker or breaker for both the entities.
Tax Due Diligence (TDD)
Tax Due Diligence helps in reducing the risk of acquiring unseen tax liabilities and risk exposures associated with such transaction. Tax Due Diligence is important due to the following reasons
- Identification of any material tax exposures
- Validating representations made by the seller
- Validating assumptions in valuation of buyer
- Structuring deal in a tax efficient manner
- Identifying tax saving opportunities
- Understanding the target
Mergers & Acquisitions
We provide end to end solution to our clients on the ongoing transaction from the planning stage to the successful closure of the deal.
- Buy-side Advisory: We help clients in planning the acquisition strategy, comprehensive due diligence, structuring domestic & cross border tax issues, searching for potential targets, negotiate a fair value, close and post-close integration.
- Sell-side Advisory: We assist clients in achieving the most favourable valuation, develop appropriate negotiation strategies, conducting detailed seller diligence and Minimize impact of taxes.
Joint Venture
We help our clients in identifying an Indian Joint Venture Partner, negotiating the JV, structuring the transaction, drafting & negotiating the JV agreement & getting necessary regulatory approvals for closure of the deal.
FREQUENTLY ASKED QUESTIONS
Q.1. What are Transaction Advisory Services, and how do they benefit businesses?
Definition: Transaction Advisory Services (TAS) encompass a range of strategic and financial consulting services designed to assist businesses in navigating complex transactions such as mergers, acquisitions, divestitures, and restructurings.
Benefits:
- Informed Decision-Making: TAS professionals provide critical insights and analyses, enabling businesses to make well-informed decisions during transactions.
- Risk Mitigation: By conducting thorough due diligence, TAS helps identify potential risks and liabilities, allowing companies to address them proactively.
- Value Maximization: Expert guidance ensures that transactions are structured to maximize value for stakeholders.
- Regulatory Compliance: TAS ensures that all aspects of the transaction adhere to the latest regulatory requirements, minimizing legal complications.
Q.2. What are the key components of Transaction Advisory Services?
- Due Diligence:
- Financial Due Diligence: Assessment of financial health, including analysis of assets, liabilities, cash flows, and financial statements.
- Tax Due Diligence: Evaluation of tax compliance and identification of potential tax liabilities or benefits.
- Operational Due Diligence: Examination of operational processes to identify efficiencies or areas of concern.
- Commercial Due Diligence: Analysis of market conditions, competitive landscape, and commercial viability.
- Valuation Services:
- Determining the fair value of assets, businesses, or equity interests to inform pricing and negotiations.
- Deal Structuring:
- Advising on the optimal structure of transactions to achieve strategic objectives and tax efficiency.
- Integration and Implementation Support:
- Assisting in the seamless integration of acquired entities, including aligning processes, cultures, and systems.
Q.3. How have recent regulatory changes impacted Transaction Advisory Services in India?
- Enhanced Due Diligence Requirements:
- Regulatory bodies have increased scrutiny on transactions, necessitating more comprehensive due diligence processes.
- Taxation Reforms:
- Recent amendments in tax laws require careful evaluation during transactions to ensure compliance and optimize tax outcomes.
- Foreign Direct Investment (FDI) Policies:
- Changes in FDI regulations impact cross-border transactions, requiring specialized advisory services to navigate these complexities.
- Environmental, Social, and Governance (ESG) Considerations:
- There is a growing emphasis on ESG factors in transactions, with regulatory frameworks encouraging sustainable and responsible business practices.
Q.4. How can businesses select the right Transaction Advisory Services provider?
- Experience and Expertise:
- Look for providers with a proven track record in handling transactions similar to your industry and scale.
- Comprehensive Service Offering:
- Ensure the provider offers a full suite of services, including due diligence, valuation, tax advisory, and integration support.
- Regulatory Knowledge:
- The provider should have up-to-date knowledge of the latest regulations and compliance requirements.
- Reputation and References:
- Seek testimonials or references from previous clients to assess the provider’s reliability and quality of service.
- Customized Approach:
- The provider should offer tailored solutions that align with your specific business objectives and transaction goals.
Q.5. What role does a Chartered Accountant play in Transaction Advisory Services?
- Financial Analysis and Due Diligence:
- Conducting in-depth financial analyses to assess the viability and profitability of transactions.
- Valuation Expertise:
- Providing accurate valuations of businesses and assets to inform negotiations and decision-making.
- Tax Advisory:
- Offering insights into tax implications and structuring transactions to achieve tax efficiency.
- Regulatory Compliance:
- Ensuring that all transaction components comply with applicable laws and regulations.
- Post-Transaction Support:
- Assisting with integration processes, financial reporting, and ongoing compliance post-transaction.