Financial Due Diligence
You need more than a set of historic accounts. Our financial due diligence provides an independent, structured view of a target’s financial performance, quality of earnings and cash dynamics – helping you avoid over-paying and ensuring the numbers stand up to scrutiny.
We focus on understanding how financial performance has been generated and whether it is sustainable.
What we review
Historical financial performance and trends
Quality of earnings and one-off or exceptional items
Revenue recognition policies and cost allocation
Working capital requirements and seasonality
Cash flow profile and funding needs
Balance sheet integrity and off-balance sheet exposures
Forecast assumptions and sensitivities
Our process
Analyse financial data and management information
Reconcile accounts with the underlying drivers of performance
Flag inconsistencies, anomalies and areas requiring clarification
Provide a narrative report with clear conclusions and recommendations
Support negotiation on completion accounts, earn-outs and working capital mechanisms
Outcomes
Independent validation of the financial story
Sound basis for pricing, structure and risk allocation
Better alignment between expectations and reality post-completion
