Assess whether related-party sales should be backed out of valuation (3dc083)

SITUATION Working-capital true-up analyst is responsible for related-party sales should be in a strategic buyer looking at a carve-out from a conglomerate, using post-merger systems-integration risk register as the only working extract. IT diligence showing two ERPs and no chart of accounts map is what reset the timeline for this M&A Due Diligence Legal, IP, and Regulatory file.

DECISION Working-capital true-up analyst in a strategic buyer looking at a carve-out from a conglomerate must choose Proceed / Reprice / Walk / Hold using post-merger systems-integration risk register after IT diligence showing two ERPs and no chart of accounts map.

HYPOTHESES TO TEST 1. Post-merger systems-integration risk register reads as Proceed once IT diligence showing two ERPs and no chart of accounts map is lined up to the same M&A Due Diligence population. 2. Post-merger systems-integration risk register is closer to Reprice after IT diligence showing two ERPs and no chart of accounts map; Proceed would over-claim this Legal, IP, and Regulatory extract. 3. Walk is still live in post-merger systems-integration risk register for working-capital true-up analyst in a strategic buyer looking at a carve-out from a conglomerate. 4. Post-merger systems-integration risk register is missing the fact working-capital true-up analyst needs after IT diligence showing two ERPs and no chart of accounts map; stop this M&A Due Diligence close.

ANALYSIS REQUIRED 1. Separate a one-off add-back from a recurring earnings issue in post-merger systems-integration risk register. 2. Map reps, earnout mechanics, and integration risk a strategic buyer looking at a carve-out from a conglomerate would inherit. 3. Tie quality-of-earnings, working-capital, and contingent items in post-merger systems-integration risk register to related-party sales should be. 4. For this M&A Due Diligence Legal, IP, and Regulatory file, read post-merger systems-integration risk register against IT diligence showing two ERPs and no chart of accounts map and write the one fact that would move related-party sales should be for working-capital true-up analyst.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Legal, IP, and Regulatory packet (post-merger systems-integration risk register after IT diligence showing two ERPs and no chart of accounts map). The follow-on Legal, IP, and Regulatory action is what working-capital true-up analyst does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on related-party sales should be, then the evidence in post-merger systems-integration risk register, then the action for working-capital true-up analyst - Hypothesis scorecard against post-merger systems-integration risk register: supported / rejected / untestable - Owner and next date for working-capital true-up analyst in a strategic buyer looking at a carve-out from a conglomerate - What changes related-party sales should be if IT diligence showing two ERPs and no chart of accounts map is later withdrawn