Financial Due Diligence

Identify and focus attention on the factors in the business for buyers and vendors…

DiligenceAll businesses involved in an acquisition, as buyers or sellers, need to ensure that the financial information they hold is as accurate as possible, not only in determine pricing but also to ensure that their governance and risk management objectives are met.

  • From the buyer’s perspective the quality of information available about a potential acquisition determines the ultimate success of a transaction. Without ensuring that the financial statements about a business reflect the reality, a deal may deliver less than first impressions suggest.
  • To ensure an efficient sales process, vendors need to present their financial information to potential buyers as transparently as possible. An independent assessment provides potential buyers with certainty about the business and the nature of its cash flow.
  • Financial due-diligence can help to identify and focus attention on the factors in the business that will be critical to its future success.
  • Company boards’ governance responsibilities require them to ensure that all steps possible have been taken to identify any problematic issues in a potential acquisition

How we can help:

  • Enhance the buyer's understanding of the target business and therefore increasing the likelihood of the deal achieving its objectives.
  • Help buyers in identifying and understanding critical success factors to ensure accurate decisions are made.
  • Provide purchasers with greater certainty over the nature of the business and the characteristics of its cash flow and net worth. This helps pricing decisions and the level of gearing the structure will support. 
  • Provide vendors with systematic sale process and the timing of sale, which promise a higher price for the business.