Buy-Side Diligence for a Cross-Border Acquisition
The Challenge
A US-based industrial group was acquiring a manufacturing company with operations in India and the Middle East. The target had complex intercompany arrangements, inconsistent cost allocation methods across plants, and unrecorded contingent liabilities related to pending regulatory matters.
Our Approach
FYNX conducted financial and tax due diligence across three jurisdictions simultaneously, deploying teams in Delaware, Gurgaon, and Dubai. We performed quality of earnings analysis adjusting for non-recurring items, normalized working capital calculations, and identified undisclosed tax exposures through a detailed review of assessment orders and notices.
Measurable Results
Identified $2.1M in working capital adjustments not disclosed by the seller
Quantified $850K in contingent tax liabilities requiring indemnity protection
Completed diligence across three jurisdictions in 6 weeks
Purchase price was renegotiated downward by $1.8M based on findings