During the financial due diligence phase, our team focuses on the factors that affect the value of the business, and which are important for determining the right price for the deal. Our approach focuses on business processes and those issues that are critical for a successful transaction, with the aim of delivering valuable input to price negotiations.
Financial due diligence will provide insight by:
- Understanding the business and its drivers;
- Identifying and assessing the key financial and business risks affecting the proposed transaction;
- Analyzing key financial performance indicators relevant to the deal price (net debt, net working capital, normalized EBITDA, etc.);
- Analyzing the quality of the assets and recurring cash flows;
- Revealing the key financial effects of tax structures employed by the target;
- Providing critical analysis of the budgeting/planning process and budgets/business plans prepared by management, including analysis of potential upsides and areas of vulnerability;
- Assessing the quality of financial information (IFRS/statutory/management accounts), financial systems and relevant controls