Financial Due Diligence
Before you buy or invest, you should check that the numbers are real. Financial due diligence looks behind the accounts to find risks, adjustments and surprises while you can still change the price or the terms.
Who it is for
- Buyers preparing to acquire a business
- Investors about to put money into a company
- Lenders and boards who want an independent view of the numbers
- Sellers who want to find problems before a buyer does
What we look at
- Quality of earnings: how reliable and repeatable the profit is
- Adjustments to EBITDA for one-off and unusual items
- Revenue, margins and customer concentration
- Working capital and cash conversion
- Net debt and debt-like items
- The key assumptions behind management's forecast
What you get
- A due diligence report with a clear summary of the main findings
- An EBITDA bridge from reported to adjusted figures
- Net debt and working capital analysis
- What the findings mean for price and terms
- A list of questions to put to the seller
How it works
- Intro callWe talk through what you are trying to achieve, what information exists, and whether we are the right fit. This call is free.
- ScopeWe agree what to focus on, based on the deal and your concerns.
- ReviewWe go through the accounts, records and management information.
- ReportWe set out the findings, ranked by how much they matter.
- NegotiateWe help you use the findings in discussions on price and terms.
What we need from you
- Access to the data room or financial information
- Accounts for the last three years, if available
- Management accounts and the current forecast
Please note. This is a review of financial information. It is not an audit. Legal, tax, technical and regulatory due diligence are done by the relevant specialists, and we coordinate with them.
Questions
Is due diligence the same as an audit?
No. An audit gives an opinion on whether financial statements are fairly presented. Due diligence looks at the numbers from a buyer's or investor's point of view, asking what the business really earns and what could go wrong.
How long does it take?
It depends on the size of the business and how quickly information arrives. We agree a timetable at the start.
Tell us what you are working on.
Send a short message. We reply, agree what you need, and set a time to talk. Intro calls are free and carry no obligation.