In this episode of The Drawdown, Cherry Bekaert’s Cameron Smith is joined by Richard Schwartz and Travis Sheldon to reveal how commercial due diligence and market studies are enhancing M&A outcomes by empowering buyers and sellers. From validating investment theses to strengthening negotiation positions, the conversation dives into how M&A participants can leverage market intelligence to drive value in middle-market deals.

Listen in as they discuss:

• The evolving role of commercial due diligence in buy- and sell-side transactions
• How market studies help sellers cast a wider buyer net and de-risk buyer concerns
• The importance of substantiating growth narratives in middle-market deals
• How effectively considering scope and strategic alignment increases the quality of a market study
• A case study on how a lifestyle appliance brand successfully leveraged a market study to attract a strategic buyer

Let Us Guide You Forward

Working in tandem with the Deal Advisory practice, Cherry Bekaert’s Commercial Due Diligence & Market Studies team can support you through your next transaction with confidence and clarity. Whether you're preparing for a sale, evaluating a potential acquisition, or simply exploring how market studies can enhance your transaction strategy, Cherry Bekaert is here to help.

With the passage of the Inflation Reduction Act (IRA), certain renewable energy tax credits can now be transferred or sold by those generating eligible tax credits to qualified buyers, including private equity investors, seeking to purchase tax credits. Transferable energy tax credits provide a new and more efficient way for taxpayers to monetize these tax credits alongside tax equity structures, while providing a significant tax planning opportunity for private equity funds and their portfolio companies.

In this episode of The Drawdown, Chris Truitt, Partner and Transaction Tax Services Leader, welcomes Marty Karamon, Partner and Tax Credits & Incentives Advisory Leader, Will Billips, Tax Services Partner, Tim Doran, Tax Credits & Incentives Advisory Director, and David Mohimani, Tax Credits & Incentives Advisory Manager. Together, they discuss deal structuring alternatives for transferable energy tax credits and how the new rules are impacting the private equity industry.

Related Guidance

• Article: IRS Announces Notice 2024-36 and Round Two of Section 48C Allocations Timetable
• Webinar: The Developing Market for the Purchase and Sale of Clean Energy Tax Credits
• Webinar: Navigating the Impact: Inflation Reduction Act of 2022 Update
• Article: Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers

Business interruption (BI) insurance is crucial for private equity firms, as it provides financial protection in the event of unforeseen disruptions to a portfolio company's operations. Interruption in business operations due to natural disasters, supply chain disruptions or cybersecurity breaches can have a significant financial impact to a fund’s bottom line. For private equity firms, business interruption insurance is not only a risk management tool but also a strategic asset that can safeguard their investments, maintain the trust of investors and protect the long-term value of their portfolio companies.

In this episode of The Drawdown, we welcome three members of Cherry Bekaert’s Forensic and Dispute Advisory Services team: Lori Smith, Partner and Practice Leader, and John Collier and J.C. Tuthill, Managing Directors. Together, they discuss:

• 1:28 - Business interruption insurance triggered upon damage to covered property at the premises
• 2:30 - Coverage and policy terms for funds and portfolio companies
• 4:25 - Calculating payment for types of business losses
• 11:00 - Dependent property coverage
• 12:55 - Next steps for fund managers

If you or your private equity firm have any questions about business interruption insurance or how to prepare for a disruptive event, please reach out to our Forensic & Dispute Advisory Services team.