Experienced business financial consultant Evan Kase has stressed the importance of performing financial due diligence to determine the value drivers of the financial performance of a company and assure a possible buyer that the future earnings of the company will be sustainable.
“Performing expert financial due diligence is a crucial part of an investment process. Financial due diligence experts help buyers of corporate debt get a grasp of the historical financial situation of the company and the reliability of the reported numbers. They also help you check that there are no hidden skeletons in the closet,” Evan said in a press statement.
Evan, who holds over 10 years of experience in financial services including corporate underwriting and asset-backed securitizations, cited the need to perform financial due diligence reviews in explaining the trends observed in the operational results of a company.
Financial due diligence is usually performed when a buyer seeks to acquire a company or is engaging with a bank to take on debt. In this process, the buyer must have certainty about the company and the financial situation it is in.
“That’s where experts in financial diligence like me step in. A due diligence review initiates a detailed investigation and analysis to check on key issues facing a target’s financial business,” Evan Kase, a Stamford-based due diligence expert himself, said.
Evan has prior career experience with Hilco Valuation Services, a Hilco Global company, which performs diligence duties for traditional and complex ABL transactions, with a focus on financing events related to M&A, carve-outs, bankruptcies, and restructuring.
Evan said buyers should get an independent and unbiased opinion from people who have no stake in the transaction.
“Due diligence is performed by experts who fully know the intricacies of the M&A environment. That is always on top of the criteria in choosing your expert,” Evan said.
In his role at Hilco, Evan said he was responsible for analyzing the working capital structures of medium to large companies and providing in-depth analysis to potential private equity, bank, and/or hedge fund investors to assist in the creation of lending structures and loan capacities.
His deliverables to potential lenders included both written descriptions of findings through working capital analysis utilizing a variety of applicable financial models with a focus on collateral quality.
Before joining Hilco Global, Evan was a U.S. Associate at BMO Harris Bank in Chicago, Illinois for about two years.
During his time there, Evan focused on client relationship management, where he prepared capital structure analysis and complete underwriting of new credit and capital markets opportunities.
“My role as an underwriter also included supporting the relationship team in identifying new areas of investment/banking opportunities to diversify client portfolios and increase potential revenue generation,” Evan said.
Evan said he also handled capital and credit risk analysis, where he conducted analyses of client capital and credit risk, and reviewed and monitored the performance of existing accounts and client relationships.
Evan said he also conducted financial modeling and analysis where he created financial models for use in analyzing prospective lending opportunities, and also participated in deal teams to develop, present and win mandates for new opportunities.