Due Diligence - Financial.
Financial due diligence tests whether a target business's reported numbers hold up before you invest in it, lend to it or buy it. We analyse the quality and sustainability of earnings, working capital, net debt and off-balance-sheet exposures, so you can price the deal, negotiate protections and plan integration on facts rather than the seller's presentation.
Typically 3–6 weeks. The target's size, the quality of the data room and the speed of management responses drive the time.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Acquirers and investors evaluating a company or business
- Private equity and venture funds before an investment round
- Lenders assessing a borrower or an acquisition financing
- Sellers wanting a vendor due diligence report before going to market
What you receive at the end.
- 01Red-flag summary of key issues
- 02Financial due diligence report
- 03Quality of earnings and normalised EBITDA analysis
- 04Net debt and working capital analysis for deal pricing
Due Diligence - Financial, step by step.
Typically 3–6 weeks. The target's size, the quality of the data room and the speed of management responses drive the time.
- 1
Scope and data request
We agree the scope, period and materiality with you and issue a request list to the target.
- 2
Data room review
We review the financial statements, ledgers, contracts and MIS made available.
- 3
Financial analysis
We normalise earnings for one-off items and analyse revenue quality, margins, working capital and debt-like items.
- 4
Management discussions
We meet the target's management to test explanations and fill gaps.
- 5
Findings and deal points
We issue a red-flag summary and a full report, and help translate findings into price and deal-term points.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Audited financial statements and management accounts for recent years
- Trial balances and ledgers
- Customer, vendor and contract details
- Borrowing, guarantee and security documents
- Business plan and projections
- Previous due diligence or audit reports
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Due Diligence - Financial.
Ready to discuss Due Diligence - Financial?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.