Acquisition and Financial Due Diligence Support by Inteli Law LLP

Client Overview:

The client in this case is a seasoned investment company that specializes in high-risk acquisitions, focusing on businesses facing bankruptcies, turnarounds, and other critical situations. The company's core strategy revolves around acquiring industrial, manufacturing, and service-related enterprises, often distressed, and revitalizing them through strategic investments. By working with experienced management teams and reinvesting funding resources for operational growth and productivity, the client believes they can generate high returns on investment.

Project Summary

The client initiated a plan to purchase several made-for-home products circulation hubs from a large international corporation. The goal was to integrate these hubs into a single enterprise and eventually list the new entity for public engagement through an Initial Public Offering (IPO). Given the complex and high-risk nature of the acquisition, the client sought support from Inteli Law LLP for financial due diligence, acquisition processing, and IPO preparation.

Challenges

1.Lack of Financial Documentation:

One of the main challenges faced during the acquisition process was the absence of objective financial documentation for the individual circulation hubs or as a group. This made it difficult to assess the true financial value of the assets and forecast future performance accurately.

2.Complex Asset Assessment:

The circulation hubs operated under varying conditions with no consolidated or audited financial records, making asset valuation and productivity analysis challenging.

3.Aggressive Timelines:

The client was working under tight deadlines to integrate the assets and prepare for the IPO, which required efficient and timely execution of financial documentation, audit processes, and filings.

Inteli Law LLP's Approach

To support the client's acquisition and IPO objectives, Inteli Law LLP employed a multifaceted approach:

1. Financial Due Diligence:

Inteli Law LLP started the project by performing an in-depth financial due diligence review of the targeted assets. This included assessing the operational productivity and quality of the assets, as well as developing pro forma financial statements for the future entity based on historical performance data.

2. Asset Quality and Productivity Assessment:

Despite the absence of formal financial documentation, Inteli Law LLP performed an analysis of the assets based on operational data, including productivity levels and asset utilization, providing the client with a realistic picture of the business's current state.

3. Historical Financial Reconstruction:

One of the critical actions was to help the client reconstruct historical financial documentation for previously unaudited operational activities. Inteli Law LLP worked with the client to gather operational data, organize it in a coherent manner, and prepare the necessary financial reports required for the IPO filing process.

4. IPO Preparation and Organizational Workflow Guidance:

Inteli Law LLP also provided strategic guidance on the end-to-end organizational workflow needed for IPO preparation. This involved streamlining the documentation process, ensuring compliance with regulatory requirements, and creating action plans to guide the client through the IPO filing stages.

5. Audit and Filing Support:

Inteli Law LLP assisted the client in conducting an objective audit of the financial documentation, which was necessary for the IPO filing. In addition, Adler ensured that all other required documents were properly prepared and submitted within the aggressive timeline.

Outcomes:

To support the client's acquisition and IPO objectives, Inteli Law LLP employed a multifaceted approach:

- Successful reconstruction of historical financial data for the previously unaudited assets.

- Accurate assessment of asset productivity and financial projections for the new entity.

- Timely completion of all necessary audits and regulatory filings for the IPO.

- Development of results-driven action plans that enabled the client to navigate the complex acquisition process with confidence.

The client was highly satisfied with Inteli Law LLP’ ability to deliver under challenging circumstances and praised the firm for its ability to turn what seemed like an impracticable project into a successful engagement. This case cemented a strong ongoing business relationship between Inteli Law LLP and the client, with future engagements anticipated.

Conclusion:

Inteli Law LLP’ expertise in financial due diligence, acquisition processing, and IPO preparation enabled the client to overcome significant challenges in the acquisition of distressed assets. Their tailored approach, hands-on support, and ability to work under tight deadlines provided the client with the confidence and tools needed to achieve their strategic objectives.

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