The success of an acquisition is determined in part by the quality of the due diligence process.
Financial due diligence is a crucial element of the broader investigation into the target company, especially in terms of the shareholder value the transaction is expected to generate.
Our financial due diligence experts have a well-deserved reputation for thoroughness and insight among banks and private equity houses which might be considering funding a management buy-out.
We also carry out vendor due diligence which identifies potential issues and can be used to prevent these being used for ‘price chipping’ purposes by a potential buyer.
Financial due diligence includes an analysis of historic performance, cashflow, assets and liabilities, as well as an assessment of forecasts on working capital requirements. The process may also involve reviewing the financial systems and controls and examining the tax position of the target.
All our due diligence reports summarise the main issues, together with our opinion on any risks associated with the proposed deal.