Financial Due Diligence

We employ industry specific knowledge of the “best practices” and techniques available for financial due diligence investigations, ensuring:

Thorough review of the target company’s financial statements, operating procedures, accounting records, key financial ratios, tax records, and any filings with relevant governmental agencies;
Identification of questionable practices, such as early recognition of revenue, recording revenues that are not genuine or are reversible, increasing income with a one- time gain, shifting expenses to a later period, shifting income to a later period, and failing to record and disclose all liabilities;
Investigation of questionable transactions such as complex business arrangements that are not well understood or financial results that appear to be “too good to be true”; and
The assessment of overall financial health of the target company and its future financial prospects.
Enhancement of the buyer’s understanding of the target business and therefore increasing the likelihood of the deal achieving its objectives.
Identification and understanding of critical success factors so that informed acquisition decisions can be made.
Greater certainty over the nature of the business and the characteristics of its cash flow. This helps pricing decisions and the level of gearing the structure will support.
Greater control over the sale process and the timing of sale, this can help secure a higher price for the business.
Reduction of disruption to the business as the sale process is more controlled.
Retention of pace and initiative throughout the sale process.