HighDrive NetworkHighDrive NetworkHighDrive NetworkHighDrive Network
  • Programs
    • The BusinessMakers
    • The EnergyMakers
    • HXTV
    • HealthMakers
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • Business Builders
    • Brandonomics
    • Women Mean Business
    • Biz Moments
  • About HighDrive
  • Contact

Due Diligence from Audit and Tax Perspectives

Entrepreneur's Playbook | Episode: 641 | Guests: Chris Hatten, Martin Euson | 0
Jen Lemanski hosts Chris Hatten and Martin Euson, both directors on the PKF Texas Transaction Advisory Services team. They explain due diligence from both the audit and tax perspectives.

Jen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Jen Lemanski, this week’s guest host, and I’m back again with Chris Hatten and Martin Euson, two of the Directors on our Transaction Advisory Services team.  Guys, welcome back to the playbook.

Chris:  Thanks Jen.

Martin:  Thank you Jen.

Jen:  Now I’ve heard you guys talk about due diligence, what is it?

Martin:  On the tax side Jen due diligence really comes down to a process of investigating and examining a target company’s tax filings and tax records historically to see if there’s anything in there that may present risk or exposure that the buyer wants to be aware of so they can take that into their decision making ahead of time before learning about those things afterward.

Chris:  From the financial reporting side of things it’s more so an income statement approach because a lot of times the transaction is based off some multiple of earnings or revenue and so as the buyer you want to make sure that there is some reliability and predictability behind those numbers, and so we kind of go in and do a deeper dive on that.

Jen:  So it sounds like it’s usually the buyer doing the due diligence, is that?

Martin:  That’s correct Jen but oftentimes the seller will also do diligence on itself.  Diligence can be a disruptive process if you’re having multiple buyers come in and multiple bidders come in and going through that process, so that can be a little bit disruptive.  And it also gives the seller a chance to find out what, if any, skeletons are in their closet before a buyer comes in and does diligence and so it can occur on both sides.

Chris:  Definitely.  To further Martin’s point it is a very disruptive process and so they want to make sure that they’ve got all their historical records, their financial statements, everything else in order to add a little smoothness to the process.

Jen:  Perfect.  Well I think we might need to dive into the sell side a little bit later, can I get you guys back?

Martin:  Absolutely.

Chris:  We can do that.

Jen:  All right, perfect.  To learn more about how we can assist you with potential transactions visit PKFTexas.com/transactionadvisoryservices.  This has been another Thought Leader production brought to you by PKF Texas The Entrepreneur’s Playbook.  Tune in next week for another chapter.

brought to you by

Recent Entrepreneur's Playbook Episodes

Entering a Licensing Agreement - What to Know

Entering a Licensing Agreement – What t...

There are various nuances when you’re navigating a licensing agreement – the best terms, ...
Entrepreneur's Playbook
The Importance of GAAP Financial Statements

The Importance of GAAP Financial Statements

GAAP financial statements can help streamline the due diligence process for buyers and sellers ...
Entrepreneur's Playbook
Documentation for Your Donors' Charitable Contribution

Documentation for Your Donors’ Charitab...

Does your not-for-profit organization have generous donors? Make sure you’re providing the correct documentation ...
Entrepreneur's Playbook
Why Sell-Side Due Diligence Helps Sellers

Why Sell-Side Due Diligence Helps Sellers

Think of sell-side due diligence like car maintenance. We’re the mechanics taking a look ...
Entrepreneur's Playbook
Why Companies Should Have a Licensing Agreement

Why Companies Should Have a Licensing Agreeme...

Do you know the benefits of purchasing a licensing agreement for your company? How ...
Entrepreneur's Playbook
Why Business Owners Should Invest in an Audit

Why Business Owners Should Invest in an Audit

There is more to an audit than simply going through one. Other valuable things ...
Entrepreneur's Playbook
Load More Episodes Loading...
© HighDrive 2018-2019 | All Rights Reserved
  • About HighDrive
  • Charlotte, NC
  • Columbus Ohio
  • Contact HighDrive
  • Fort Lauderdale
  • HighDrive Network
  • HighDrive Programs
    • Biz Moments
    • Brandonomics
    • Business Builders
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • HealthMakers
    • HXTV
    • The BusinessMakers
    • The EnergyMakers
    • Women Mean Business
  • HighDrive Weekly
  • Indianapolis Indiana
  • Kansas City
  • Milwaukee
  • Nashville
  • Oklahoma City
  • Raleigh NC
  • San Antonio
  • Seattle
HighDrive Network