Dyke Yaxley, a member firm of The Corporate Finance Network with offices in Shropshire and the United States, was approached by a bank to support the acquisition of a pub and restaurant. The engagement involved completing an independent due diligence review to provide the lender with assurance over the transaction.
Led by Sarah Hartshorn, the Dyke Yaxley team undertook a detailed review of the target business. Acting independently on behalf of the bank, they focused on key financial, commercial, and operational considerations relevant to the hospitality industry.
The scope of work included assessing the quality and sustainability of earnings, reviewing historic financial performance, and evaluating cash flow generation in a sector often exposed to seasonality, cost pressures, and changing consumer behaviour. Particular attention was paid to margins, staffing costs, and the robustness of financial information used to support the acquisition funding.
Drawing on extensive experience in transaction support and due diligence, the team worked closely with relevant stakeholders to ensure that key risks were clearly identified and appropriately addressed. Their findings provided the bank with the confidence and clarity required to progress with funding the acquisition.
As for the outcome, the acquisition was successfully completed, with the bank satisfied that the due diligence findings supported the funding decision and overall transaction objectives.
