THE PORTFOLIO SOUND DECISIONS // Matt Klauser, Director, BKD LLP
MID-MARKET TRENDS
SOUND DECISIONS
TAP BUTTONS TO NAVIGATE COLUMNS
Matt Klauser
ing from opening an overseas location
Matt Klauser is a director at BKD LLP, a na-
with lower per-hour labor costs and a high
tional CPA and advisory firm, where he focus-
margin on a recently completed significant
es on key performance indicators and helping
project. The seller indicated the project
his clients learn about the fundamentals of the
included a bonus for a short turnaround
business they are evaluating, while analyzing
and it would be difficult to replicate this
historical results during due diligence in com-
project margin on a recurring basis.
parison to his client’s investment thesis.
BKD’s findings gave the buyer a clearer picture of the target’s true value, providing potential leverage in the negotiations if the buyer decided to pursue a lower purchase price. How will a similar finding affect your next transaction? After reviewing the above case study with the webinar attendees, I asked them how they’d expect to handle a significant project; 88 percent of the respondents indicated the buyer should at least consider renegotiating the purchase price. The results are clear: If you aren’t scrutinizing a target company, you may be missing a devil—or angel—in the details. //