How to Avoid Buying a Liability in Africa!
Why Due Diligence Matters in M&A
You wouldn’t buy a house without an inspection. Acquiring a company is no different. Due diligence protects you from taking on:
- Unpaid taxes or lawsuits
- Overstated revenue
- Poor employee contracts
- Aging or overvalued assets
- Unfavorable supplier/customer terms
Skipping diligence could mean overpaying or worse, buying a ticking time bomb.
What Asgard Reviews During M&A Due Diligence
Our due diligence process for buyers includes:
- Financial Analysis: Clean-up of financials, trends, margin analysis, normalization
- Legal Review Support: Flagging liabilities, leases, contracts, and litigation exposure
- HR & Payroll Review: Employee classifications, payroll accuracy, severance liabilities
- Asset Verification: Real condition checks for equipment, inventory, IP, and leases
- Contract Risk: Client/vendor contracts and dependencies
We don’t just look for problems, we help quantify their cost so you can adjust the offer or walk away.
Common Red Flags in Private M&A Deals in Africa
- Revenue spikes not tied to recurring clients
- Unreported tax issues or liabilities
- Major customers without contracts
- Family members on inflated payroll
- Lack of IP or IP not registered to the company
These issues can reduce valuation or destroy the deal entirely.
Afrorian’s Value: Mitigating Risk, Enhancing Confidence
Our experts works alongside your operational, legal or financial teams to:
- Identify local or regional risks BEFORE money is spent
- Support fair negotiation on valuation or deal structure-with currency fluctuations and specific country regulations
- Ensure lender confidence post-diligence
Industry experts act as your second set of eyes, without bias, with experience, and with your bottom line in mind.
Protect Your Capital. Protect Your Investment.
M&A can be the growth opportunity of a lifetime, if done right. Let’s make sure your next acquisition in Africa is strategic, compliant, and risk-adjusted to the market. Africa is so fragmented to implement the same strategies, ,use the same due diligence, or metrics to evaluate a deal. Find experts to work alongside you
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