CPA + attorney recommendation for DD: Marketing agency | Nevada | Hawaii
September 03, 2024
by a searcher from Brigham Young University in Seattle, WA, USA
I'm actively working on a marketing agency deal. The company is registered in Nevada, and primary business is done in Hawaii. Revenue at $2 - $2.5M. I'm now interviewing CPAs and attorneys to help with due diligence. Would love any recommendations in this community!
I'll check out DueDilio, but I generally like personal recommendations. TIA!
from The University of Georgia in Atlanta, GA, USA
This advice will run contrary to the other comments you've seen here, but *DO NOT* use a CPA or an attorney for the due diligence/valuation phase of your acquisition (you can of course lean on them for tax advice and transactional matters). Marketing firms operate very differently from conventional (i.e. licensed) professional services firms (the high degree of pass through costs, is just one example). Generalists advisors such as CPAs and attorneys tend to miss some major red flags which turn out to be fatal down the road (private equity acquirers of marketing firms occasionally engage me to help them unravel those sorts of issues post-close).
I highly recommend you work with Jonathan Baker at Punctuation for a standalone valuation and DD engagement. https://punctuation.com/ma-services/valuation/
You're welcome to shoot me a message if you'd like some deeper insight into what you can expect as you navigate your acquisition. Great luck!
from University of Michigan in Detroit, MI, USA
As for lawyers, is there any reason you're interviewing lawyers just for diligence? On a deal this size, your lawyer will normally handle the entire matter (diligence to documents to close).
My firm, Groundswell Advisors focuses on SMB M&A. We'd welcome the chance to represent you in this deal. Let me know if you want to discuss. Either DM me here or reach out directly at redacted