Due diligence firms vs accountants

searcher profile

July 06, 2021

by a searcher from University of Virginia-Darden - Darden School of Business in Charlottesville, VA, USA

All,

I am working on getting due diligence team members in place so when I get a company under LOI we can roll right into the quality of earnings analysis. What are your thoughts on standard accounting firms vs due diligence specific firms? Yes I know they are all accountants. Any firms with particularly good reputations out there?

Thanks.

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commentor profile
Reply by a professional
from University of Texas at Austin in Houston, TX, USA
I'd go a step further besides simply recommending a due diligence firm over an accounting firm and say to go with a due diligence firm that has some level of expertise in the business you're looking to acquire. Sure, the premise of financial due diligence or a QoE may be similar between various industries, but if the due diligence company has some underlying expertise or experience in the industry or type of business you're looking to acquire, that will only work in your favor.

Happy to chat more about your financial due diligence needs. At Rapid DIligence, we offer Quality of Earnings and other financial due diligence services, all led by a highly experienced and well-qualified CPA with over a decade of experience in M&A. I'd be happy to chat more and see if we're a good fit (or otherwise just answer any questions you have) — feel free to send me a private message or email me at redacted
commentor profile
Reply by a professional
from University of Texas at Austin in Atlanta, GA, USA
Jared - Lots of great responses. I personally wouldn't look at it as CPA firm vs. diligence specialist. I would focus on: 1) Do I like the person I am hiring and will they be leading the project (remember diligence is an extension of you...if the seller doesn't like the diligence team they won't like you - that's adding deal risk); and 2) Does the person executing the work have significant/varied deal experience (most groups can make nice schedules, verify adjustments and point out issues, very few can troubleshoot and help you get closed).
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