Financial Due Diligence
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From your experience, when it comes to financial valuation models, are local finance experts (e.g. accounting, controlling) involved in the set-up of the model or is this task fully outsourced?
Local finance experts (like accounting and controlling) are usually involved to provide data and validate assumptions, and this helps helps ensure accuracy and avoid surprises later. But the actual valuation model is typically built by the corporate M&A team.
It depends if the companies involved have their own Finance department structured (ideally with and M&A ad hoc department) or not. If not it is quite common to involve external professionals such as M&A consultants to fulfill these tasks
I agree with what has been said so far. If M&A modeling is not present in house, then it can be outsourced to M&A advisor. However, in more complex transactions, there are sometimes reasons why this is a difficult task and/or something to want to avoid. If there’s a need to build an operational model to estimate synergies, even if bound by confidentiality, sometimes, the buyer might want to keep details of it’s operations as secret as possible. Also, some industries might require specialized modeling skills, e.g. infrastructure assets, insurance and banking, etc.
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