Contrary to prevailing wisdom, no widely applicable blueprints or formulas exist for successful mergers or acquisitions. In a profession that has become increasingly concerned with finding the best framework, Arunima Motiwala has built her career as a CPA and an M&A advisor not by developing the right model but by stepping outside existing frameworks to rely on sharp analytics, cultural fluency, and her conviction that the best financial advisors aren't just interpreters of data, but architects of clarity amid uncertainty.
Why Judgment Is the Trait M&A Advisors Need to Cultivate
As a licensed CPA with an MBA, Motiwala has spent ten years as a financial due diligence (FDD) specialist, specializing in M&A strategy and transactions. She has advised Fortune 500 companies, PE funds, and high-growth startups on buy-side and sell-side transactions, leading quality-of-earnings and net-debt analyses for transactions ranging from $10 million to $400 million. Motiwala has worked with firms in the US and global markets, including Grant Thornton, KPMG, and Deloitte.
Motiwala also founded Astrawise Advisors, a boutique financial advisory firm.
As a woman in a male-dominated field and an analyst who has operated in both US and global deal environments, Motiwala has had to develop a firm grasp of cross-cultural business dynamics and a facility for bridging differences in communication, cultural, and corporate expectations, and even negotiation styles.
That certainty has led Motiwala to take on roles in mentoring young analysts and driving the broader M&A discourse, with publications in BusinessWeek, The Economic Times, and SiliconIndia.
Making a Real Impact
When Motiwala looks over her career thus far, two moments in particular stand out to her. FDD is often plagued with early-stage startup deals, global mismatches, and rushed closings. In one case, during a buy-side diligence for an industrial manufacturer, she noticed that gross margins had remained stable despite a sharp rise in raw material costs. Although the variance analysis initially held up, a closer inspection of inventory trends revealed a significant buildup in finished goods over three quarters.
The company had been capitalizing not just direct materials, but also freight-in and factory overhead, without properly aligning those costs to actual sales. This practice masked operational inefficiencies and inflated gross margins. Further review uncovered $3.5 million in slow-moving inventory that hadn't been written down. Despite management's insistence that future demand would resolve the issue, sales forecasts suggested otherwise. Motiwala flagged the risk early, recommended a write-down, and worked with the client to revise the working capital peg, resulting in a $3 million price reduction and a specific indemnity tied to inventory valuation.
In another diligence, this time for a home appliance manufacturer, the target had just launched a premium product line with higher prices and longer warranties. Yet warranty accruals remained flat as a percentage of sales. Management credited product quality, but the data didn't support the claim. A deeper review revealed that recent marketing campaigns included replacement guarantees that delayed formal claims, creating a temporary dip in recorded warranty expenses. Motiwala helped the client model the full impact of this deferral, ultimately uncovering a $4.6 million shortfall in accruals.
The findings led to an adjustment in net debt and the inclusion of a true-up clause to protect against post-close spikes in claims, helping the client negotiate a $4 million reduction in the purchase price and avoid costly surprises down the line.
Motiwala would have missed that opportunity without trusting her gut and judgment. Motiwala recalls the time she invested in mentoring an early-career junior analyst.
"They were bright and driven but initially unsure of how to navigate the fast-paced world of dealmaking," she remarks.
Motiwala focused on training the analyst in the technical models and teaching her to think like a decision-maker. Years later, that analyst told her they had now led FDD at a well-reputed private equity firm. This served as a reminder for Motiwala that making a difference in her field involves more than numbers. It's about having an impact on people.
As she grows Astrawise Advisors and continues to mentor women in finance, Arunima Motiwala strives not just to deliver technical expertise but strategic insight and perspective. She focuses not just on the deal but on the people behind it, helping the M&A field become more inclusive and globally connected and helping the next generation of analysts develop the strong judgment that will allow them to unlock significant value.
