Insights

I once worked on a transaction where every item had been negotiated and all documentation was drafted and in final format, but a single number in the Subordination and Intercreditor Agreement nearly caused the entire transaction to fall apart.

The purpose of this post is to translate the language surrounding purchase accounting into a financial template with instructions that cover the balance sheet adjustments for most control transactions.

Providing an initial due diligence list is often a great way to initiate transaction-related dialogue with a CEO or management team interested in exploring a capital raise or sale of the business. Typically a due diligence list will evolve and expand as interest in a transaction grows, but it can be intimidating if the initial list provided is too thorough. Collecting a large amount of company data and presenting it in a shareable format takes considerable effort, which makes a short diligence list a helpful introduction. The template available for download contains two such due diligence lists.

If you are working with dozens of worksheets that are formatted in identical fashion (think of a company that has multiple locations with the same line items), then the ability to list all of these worksheets on one tab can be extremely helpful. As you will see in the template available for download, this permits retreiving data with the =INDIRECT function from each individual worksheet.

Occasionally when you are working with a lot of tabs it helps to have a reference to the tab name on the worksheet. An example might be a workbook containing financials for 100 restaurants.