Making informed investment decisions depends on understanding historical trends, relevant KPIs, underlying profitability, tax risks, and the business's working capital profile. Financial due diligence covers all of these key matters, and any other red flags.
We work with businesses, their owners and management teams in the mid-market at all stages of their life cycle.
From exploring the strategic options available to businesses and shareholders through to advising and project managing the chosen solution, we provide a truly integrated offering.
How we help
- Analyse the basis of presentation for the deal-basis financials presented to help you make informed decisions in negotiations
- Identify areas of risk or opportunity that can influence purchase agreement negotiations or post-transaction operations/synergy capture
- “Get the story” behind the Target’s financial numbers by understanding the underlying business drivers, not just the number
- Understand whether accounting estimates (e.g. provisions and reserves, accrual methodologies, revenue recognition) impact the quality of the company’s net assets and earnings
- Support you in understanding the difference in relation to the accounting standard for company in different regions to ensure smooth transition
- Enhance the likelihood of a successful transaction by minimising surprises in the transaction process
- Provide knowledgeable tax guidance on post-deal procedures/disposals
Key elements of financial due diligence
The executive summary sets out the key issues and highlights critical matters, positive or negative, for buyers or borrows.
Through the utilisation of data analytics and data visualisation software we can provide deeper business insights in our diligence reports alongside a dynamic deliverable.
Quality of new assets and earning assessment
Our QoNA (quality of new assets) and QoE (quality of earning) assessment identifies the key line items in the Income Statement and Balance Sheet. Identify areas of potential material overstatement of assets and understatement of liabilities, any non-recurring, one-time or extraordinary transaction and quantifies their magnitude on run rate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
Detailed analysis with focus
Our detailed Income Statement and Balance Sheet analysis is planned to focus on key risks and to provide you with the insightful by making use of tables and charts so it is easy to read. This analysis is supplemented with Excel Analysis Pack available for use throughout the process.
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