AM: We describe ourselves as a forensic accounting and corporate finance consulting firm, a global firm of professionals looking to make a difference for clients. We work with corporations, insurance companies, attorneys, private equity and corporate executives to provide financial analyses, so better business decisions can be made. Our services focus on providing three things: financial forensics; the quantification of economic damages; and the valuation of assets and securities in complex corporate transactions, legal matters and insurance claims. Through our broker-dealer unit, Baker Tilly, we also provide a wide spectrum of complementary transaction advisory services as well.
AM: Baker Tilly often plays a different role in the course of a deal depending on the party with whom we work. When we work with the buy-side, we most often are assessing the value and stability of an acquisition target. Through our transaction advisory services, we also look at strategic alignment between the companies to increase the potential for deal success. We may even evaluate a target well before the letter of intent is signed. Similarly on the sell-side, we are valuing company assets, both tangible and intangible, to gauge deal relevance and fit. Outside of M&A transactions, we provide financial opinions and perform due diligence, applying different analytical measures to quantify opportunities and risks.
AM: One of my favorite examples from the buy-side is when we used predictive customer analytics (PCA) to save a client a lot of money. In this case, our analysis revealed negative customer trends and unsustainable business practices that were not revealed in the financial reports or traditional due diligence that resulted in a $30 million reduction in the acquisition price for our client.
AM: Baker Tilly represents companies of all shapes and sizes in nearly every industry segment. We work with corporate executives, lawyers and insurance companies to provide financial analysis in complex situations. Our sweet spot in the corporate realm is typically the middle market where we can provide due diligence, valuation, transaction advisory services and fraud investigations. Our involvement with a company often centers on a pending or potential event: a corporate merger or acquisition, a significant management or ownership change, financial or tax reporting needs, commercial litigation, strategic planning for growth or sale, or a suspicion of wrongdoing.
AM: When you say “company in crisis,” the first thing that comes to mind is fraud or suspicion of wrongdoing. The United States has seen a marked increase in the occurrence of fraud in the last decade. At Baker Tilly, many of our professionals are certified fraud examiners who have extensive experience investigating employee theft and embezzlement, insurance fraud, complex Ponzi and money laundering schemes, and many other forms of fraud. We work with clients to investigate if fraud has occurred, quantify the loss and determine how much is recoverable, and document the loss and fraud for law enforcement or legal proceedings. We also work with clients to evaluate procedures and policies to help prevent instances of fraud. We’ve performed a fraud investigation for a “Dateline NBC” special on lottery winners, have uncovered fraud within private companies and government entities, and have served as expert witnesses in criminal fraud proceedings.
As appeared in Middle Market Growth, March 2014.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
*Effective December 2018, RGL Forensics joined Baker Tilly US, LLP. This article was published while we were RGL Forensics. The author(s) or team member(s) quoted from RGL are now employees of Baker Tilly.