Tag: DueDiligence
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M&A can take years.And sometimes… the deal dies before it starts.
There are many cases whereCompany A wants to buy Company B.Company B also wants to be bought. But the documents are nowhere near audit-ready. More than one set of accounting books.Numbers don’t reconcile.Key information depends on only one person. These are very common issues for small companies. So even if you’re not planning to sell…
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Legal, Accounting & FA (Financial Advisor): Why you need all 3 in M&A
Because Legal cannot value a business, Accounting cannot review contracts, and FA cannot audit financial statements. That’s why in an M&A (Merger & Acquisition), you need all 3 parties. After due diligence, if there are no hidden skeletons in the closet, the financials are audited, and the FA has completed the valuation, both buyer and…
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Before investing, know what you’re really buying. : A real case we handled recently
Mr. A was considering investing in Company B.He knows the industry well — high margin, not easy for new players to enter — so becoming a shareholder felt like a good first step into the business. He reached out to us for a valuation. During our review, we interviewed Company B’s management together with Mr.…
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Using P/E Ratios to Estimate Your Company’s Value
When customers ask about valuing their company with the Price-to-Earnings (P/E) method, here’s how it works: The result: instead of one rigid number, you get a valuation range that reflects both your company’s performance and how the market values similar businesses. 🚀 Want to know how much your business is worth?At ORNA, we provide independent…
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🔴 5 Red Flags in a Company
1. High Profit, No Cash🧾 Profit looks great, but the cash flow is missing. Could mean aggressive revenue recognition, poor collections, or rising receivables. 2. Misuse of fund – e.g. Large Loans to Directors or Related Parties💸 Money going out… but not to grow the business. This could be a sign of poor governance or…
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Every seller already has a number in mind.
We learned this the hard way. We thought we were being helpful by offering sellers different deal structures, creative options, “win-win” ideas. But no matter how logical they sounded, most of them went nowhere. Why? Because every seller already has a number in mind. We wasted time and some deals did not end well. Now…
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Thinking about investing in a startup? Ask these questions first.
At ORNA, we’ve been busy with a startup valuation this week—reminding us how important it is to ask the right questions before putting money into a new venture. Here’s a quick checklist we often refer to when evaluating a startup: ✅ What real problem are they solving—and for whom?✅ Do they have paying customers or…
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🧠 Thinking of Buying a Business? Use This 5-Point Self-Check Before You Commit
Buying a business can be an exciting opportunity — but also a risky one if you’re not asking the right questions. At ORNA, we work with investors who want more than surface-level due diligence. We help them uncover the real story behind the numbers. Here’s a quick 5-point self-check to help you assess whether a…
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“Can I get the company’s value within 2 weeks?”
We get this question a lot — and the answer is: yes and no. As consultants, our first step is to send over a list of required documents and key questions. From there, we begin building the valuation model. Typically, we need financial statements from the past 3–5 years (sometimes longer, especially if there were…
ORNA Company Limited 