Here you find a description of a buy side due diligence project in the Netherlands in the leisure industry. The buyer is a Private Equity firm active in the support of regional companies. The CFIE buy side due diligence person helped the buyer in the preparation of a buy side due diligence analysis and report. Find more details on the buy side due diligence project below.
The owner of the leisure company needed to get some fresh capital in the company. The company wanted to improve it’s equity to debt ratio. It wanted to pay off some of the debt it had to the external leasing companies who had provided mortgages on the ships. The investment would be used to strengthen the balance sheet (increase the share capital) and to use the funds for further service offerings to the client base. The clients mainly consisted of elderly people that did occasional cruises on the main rivers in Germany and the Netherlands. The leisure company was not run in a really professional way up until then. By taking a professional investor on board the owner of the company hoped to improve the financial knowledge within the company. With the new investor on board the idea was also that the relationship with the external financiers would improve.
The CFIE buy side due diligence team member in the Netherlands, Govert Derks, is active in business sales and buy side due diligence projects. In this buy side due diligence assignment the CFIE team worked in an operational role. The buy side due diligence project consisted of analysing the financial performance of the leisure company. A detailed analysis of the relationships between the legal entities was done. Focus was on analysing the capital requirements and the future cash flows. The final report was made available to the Private Equity Group to give openness and clear insight in the real performance of the company.
Feel free to contact us for further details about buy side due diligence projects in the Netherlands or other countries in Europe. If you want to learn more about due diligence please check the section on buy side due diligence. Feel free to reach out to us to get 30 minutes free advice about a buy side due diligence project for your business purchase and how best to approach this.