Transaction Advisory Services
Our transaction advisory role is centered around rigorous and insightful diligence of acquisition candidates – whether on behalf of a private equity sponsor or corporate buyer, for a third party such as a senior or mezzanine lender, or to support a sell-side process. While we respect the importance of traditional legal, accounting, tax, or environmental diligence, our focus is on examining the investment thesis behind each transaction: What are the important dynamics affecting the target company’s served markets? How strong is the company’s competitive posture? On which programs or platforms is the target represented and how are customer, mission, budget, technology and other variables likely to affect the outlook for those programs? What forecast assumptions has the company made with respect to revenue and margin performance across each of its programs and contracts? What are the principal risk factors of which a potential acquirer or lender should be aware, and how might they be mitigated? Finally - and most importantly – how is the company likely to perform over the next three to five years? Only when all of these issues are properly understood can an informed investment decision be made.
For an acquirer or lender, CSP’s business diligence assessment represents a critical element of the transaction process, supporting valuation and bid strategy, purchase price and contract negotiation, and acquisition financing. In a sell-side role, CSP’s vendor diligence process helps management to prepare for a competitive auction by analyzing market, competitive, and forecast assumptions through the lens of a prospective buyer, and provides qualified bidders with a detailed diligence assessment they can use to expedite and frame their own review of the candidate.
Unlike other advisors with far less experience in providing similar services, CSP has performed hundreds of transaction diligence engagements across every sector of the aerospace, defense and government markets. And we have the successful track record to prove it.