Reverse Due Diligence

Reverse Due Diligence

What is reverse due diligence?

In order to prepare any business for exit, GS Verde Group conducts a full reverse due diligence exercise on the business in order to gain an in depth view of the business from the perspective of a potential buyer.

This is a crucial step in the process, during which GS Verde Group objectively reviews all areas of the business through the lens of a third party, to review and report on the business' current condition, report on any areas of risk and subsequently cover any gaps or risk areas through update or implementation of new terms and conditions, contracts and policies ensuring all documentation aligns with current legislation and practices.

This step in the process ensures that when the 'real' due diligence process is carried out that the paperwork is comprehensive, de-risks the ability of any potential buyer using this as a tool to negotiate on the commercial terms of the deal.

Our expert advisers conduct a comprehensive analysis which includes but is not limited to:

Client & Supplier Relationships Employment Contracts Litigation Property & Assets Shareholders Data Protection

Client & Supplier Relationships

Ensuring all current terms and conditions of supply and purchase are up to date offering the business sufficient protection and where possible, securing long-term contracts with the businesses’ main customer base to display future revenue streams and highlight profitability. Our team will also look at how frequently a business carries out checks on its suppliers and how it guarantees delivery of materials or services, to demonstrate the strength of these agreements.

Employment Contracts

These contracts must be accurate and up to date with current legislative requirements. GS Verde will also assess which employees are essential to the running of the business and how employees might be incentivised to stay due to the transaction to ensure any future targets can be met.

Litigation

Our team examines any ongoing litigation issues to assess their impact on the business and its value from a buyer’s perspective and attempts to resolve any issues ahead of any transaction.

Property & Assets

GS Verde reviews all assets and property, including any vehicles and office equipment a business owns or utilises. Understanding property and assets contracts a business has in place can reveal any unusual restrictions, costs or other clauses that may impede a transaction.

Shareholders

As with other contracts and relationships a business has, ensuring shareholder agreements are in place and the nature of these is vital. Without shareholder agreements, the potential for disputes and disagreements is greater, which could impact on the business’ future.

Data Protection

Carrying out any required data protection impact assessments ahead of any deal, updating or implementing all data protection policies and / or data protection agreements to ensure the relevant protection of personal data belonging to customers, suppliers or employees in line with current legislation.


Find out more about due diligence for other transaction types


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Testimonials

"Implementing the Employee Ownership Scheme was the ideal way to express our gratitude to our dedicated staff. I firmly believe that taking care of our team enables them to take exceptional care of our clients. I am incredibly proud of their hard work and commitment. I could not recommend GS Verde Group highly enough. Their one-team approach provided us with all the support we needed, ensuring we chose the best option for our business. We couldn't be happier with their assistance."

Lee Horton, Athena Security Solutions

“This acquisition was extremely important in our ambitious growth strategy, and having GS Verde there to support each aspect of the transaction was incredibly helpful. Knowing that we had various aspects of support all in one place was reassuring and their expertise in handling the transaction, securing funding, and negotiating the deal was invaluable.”

Paul Ragan, UPVC Direct

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Richard Jones, MD, Paramount Interiors

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Grant Santos, CEO, Educ8 Training Group

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