SALUS Capital | Strategy Agency Logo

Cross-border Financial and Tax Due Diligence

By SALUS Capital | Strategy

Client

Project Description

Our client was a healthtech startup based in Ecuador, looking to enter Mexico through a merger led by our client. We performed due-diligence on the mexican target company, a SaaS healthtech company with strong market presence and an attractive customer base. We focused on financial and tax items.Because of time constraints, 100% of the work was done remotely and focused on the following items:Identifying financial and/or tax red flags with high risk for the transaction.Identifying and evaluating yellow flags that could complicate the transaction terms.Evaluating the quality of recurrent revenues and validate active users.Estimating short and medium term working capital needs, necessary cash reserves, and CAPEX schedule to maintain growth.Providing a framework for additional due diligence.We were able to deliver all findings and recommendations through two meetings and a 22 page deliverable. Two months later the company is finishing final details to close the transaction, and we’re moving on to support the integration of both companies.

Our client was a healthtech startup based in Ecuador, looking to enter Mexico through a merger led by our client. We performed due-diligence on the mexican target company, a SaaS healthtech company with strong market presence and an attractive customer base. We focused on financial and tax items.Because of time constraints, 100% of the work was done remotely and focused on the following items:Identifying financial and/or tax red flags with high risk for the transaction.Identifying and evaluating yellow flags that could complicate the transaction terms.Evaluating the quality of recurrent revenues and validate active users.Estimating short and medium term working capital needs, necessary cash reserves, and CAPEX schedule to maintain growth.Providing a framework for additional due diligence.We were able to deliver all findings and recommendations through two meetings and a 22 page deliverable. Two months later the company is finishing final details to close the transaction, and we’re moving on to support the integration of both companies.

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