Helping Business Partners Properly Evaluate a Company They Wanted to Acquire

My business partner and I wanted to buy a small pharmaceutical distributor company in Florida. We did not want any surprises at the closing table or after the closing.

We concluded that a forensic evaluation of the targeted business would give us peace of mind that we were making the right decision. Foodman CPAs & Advisors stepped up to the plate and started asking a multitude of questions about the company’s financials.

During this process, we discovered issues with the accounts receivable aging report. Foodman went as far as tracking each accounts receivable down, finding the transaction, and confirming the payment. This type of records evaluation assisted us in ensuring an accurate business valuation.

Foodman also utilized key financial ratios within the industry to further ensure that we as investors were paying a fair market value for the company. When the dust settled, we actually paid less as we were able to prove that certain assets did not have the value that the sellers represented.