Due diligence as part of an M&A transaction is a service that recognizes the value of the net assets, profit and loss, and the actual earning capacity of the target for acquirers to better understand what they are buying before assuming potential risks.
Aoyama Sogo Accounting Office provides efficient due diligence of the financial, tax, and business structure of a target for successful M&A transactions.
On the other hand, due diligence as part of a business recovery is a service that investigates the causes of negative net worth, puts together materials for recovery planning, and analyzes and reports the results and materials.
Aoyama Sogo Accounting Office checks the client's financial situation and identifies all business-related or legal risks. The results of an objective, judicious investigation made by a third party is indispensable for planning business recovery.
In an M&A event or a business reorganization, a third-party valuation of corporate (share) is performed on the involved companies for the purpose of clearly demonstrating the fairness of the selling price and fulfilling the seller's or buyer's accountability obligations with shareholders.
Such valuation becomes necessary in many situations where an objective assessment of corporate (assets) value is required as when a company is subject to listing examination or is required to take inheritance measures.
Aoyama Sogo Accounting Office can undertake to evaluate corporate and asset value in such a manner that the valuation will lead to their fair value being determined by an appropriate valuation method that takes into consideration the background of the client's business transactions. Where necessary under the particular circumstances we will interview management, review the business plan, and include the results obtained in the valuation as material upon which a qualitative judgment can be based.
Aoyama Sogo Accounting Office provides help to ensure a business recovery as a financial adviser as well as a service provider in charge of specific parts of the business recovery operation for any companies in troubled financial situation.
- Improvement plan in a business reorganization
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One proposal for cash flow improvement is the rescheduling of repayments to financial institutions.
If rescheduling is determined to be necessary because of a difficult cash position, Aoyama Sogo Accounting Office assists in the development of a rescheduling plan and in negotiations with financial institutions.
Then, while negotiating rescheduling plans, we will formulate plans to sell assets and cut costs and expenses and search for available public funds. - Scheme for business recovery
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In examining various business recovery possibilities, Aoyama Sogo Accounting Office will obtain funds for a company placed under the Civil Rehabilitation Law (a company in legal bankruptcy proceedings), by assigning to another company a business that is likely to generate positive cash flows in the future.
We provide comprehensive assistance for a business recovery scheme including support for fundraising, establishment of an SPV (as a recipient of the business being assigned), arrangements for related registrations, and execution of necessary agreements.
Aoyama Sogo Accounting Office will perform due diligence that includes examination of nonperforming receivables held by the company being acquired and evaluate such receivables.
Based on the due diligence report, we will consider if a review of its business will likely rehabilitate the company being acquired, and then propose a scenario for selling nonperforming receivables (or for rehabilitation of the company).
Where due diligence is performed with the focus on the real estate offered as collateral for the nonperforming receivables, we will review the value of such collateralized real estate in collaboration with real estate appraisers.
