Financial due diligence
Independent review of the target's financial position and records.
Services
Due Diligence
Financial due diligence for transactions — accounting review, quality of earnings, working capital and cash-flow analysis that gives both sides of a deal a clear, defensible picture.
What this covers
Scope of the engagement.
A brief outline of what an engagement of this kind typically involves.
Quality of earnings
Assessing whether reported earnings reflect the underlying business.
Working capital & cash flow
Analysis of working capital trends and cash generation.
Transaction risk assessment
Identifying financial risks that bear on price and terms.
In detail
What the engagement covers.
What the work involves, and the business situations that typically bring it about.
What it involves
- Financial due diligence and accounting review
- Quality of earnings analysis
- Revenue and cost analysis
- Working capital analysis and normalisation
- Cash-flow review
- Identification of financial risks and exceptions
- Net debt and completion-accounts considerations
- Due diligence reporting for transaction decision-making
Business situations
- A prospective buyer evaluating a target business before a transaction
- A business undergoing due diligence ahead of a sale or investment
- A lender or investor requiring independent financial review before committing funds
- A transaction where reported earnings need independent verification
- A business needing working capital and cash flow scrutinised before terms are finalised
Value. Independent due diligence gives both sides of a transaction a common, evidence-based understanding of the numbers — reducing the risk of surprises after the deal is done.
Who this is for
Where this fits in your journey.
Not sure whether this is the right starting point? Our What We Take On page maps the kinds of businesses and business situations we typically support.
Enquiries
Ready to discuss this with us?
Tell us about your project and we will tell you what the engagement involves.