Axxien offers due diligence services to those clients who have not retained our firm to represent them on the buy or sell side. When retained as either a buy or sell side advisor, we can recommend competent third parties to perform this work. For those companies already represented, or for those who are representing themselves, Axxien can offer high quality and comprehensive due diligence services.

Our approach to due diligence can be summed up in two words - Risk Management. Buying a company involves significant risk. Do the financial reports accurately represent the financial condition of the seller? Are the assets valued correctly? What is the nature of the seller's customer relationships? Many critical questions have to be answered.

While the documentation of a purchase transaction may require the Seller to make numerous warranties and representations about their company, the simple fact of the matter is that a buyer should make absolutely every effort to confirm independently these warranties and representations before closing. If approached in this way, success post-closing is more likely, and potential disputes and even litigation can be avoided.

At Axxien we offer a comprehensive due diligence service. That means we investigate all matters relating to a target company that are material to the transaction. Most firms only provide limited forms of due diligence. Most notable, accounting firms provide "financial due diligence." These same firms do not evaluate the target company's contracts. They do not assess the quality of the customer relationships. They do not assess the attrition risk of key employees, etc… We approach due diligence in the same way we would if we were the buyers. We want to identify all material risks; we want more than an audit.

The below list identifies some of the potential components of an Axxien due diligence engagement. Of course, every engagement is different and is thoroughly developed in consultation with our client.

• Corporate Structure
• Financial Audit
• Compensation & Benefits
• Contracts & Agreements
• Physical Assets
• Intellectual Property
• Customer Relationships
• Supplier Relationships
• Distribution Channels
• Information Technology

Beyond the holistic approach, Axxien offers its clients the benefits of significant past experience. As a former corporate buyer, Axxien principals had occasion to manage dozens of complex due diligence investigations. In the course of some of these engagements, Axxien principals worked with some of the top accounting and legal firms within the United States. At Axxien, this accumulated experience is now being made available to small to mid-size companies.

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