Due Diligence

All 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 to prevent paying too much (or in a seller's case, receiving too little), 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 some level of certainty about the business and the nature of its cash flow.

We can help you buy or sell a business intelligently. Our Team can help you by assessing a vendor or assisting the investor. We can lend a hand in:

  • Conducting a Financial Due Diligence Review to ensure the following:
    • That the financial information given by the seller is accurate
    • Quality of information so that the deal delivers what is implied, to make sure that deal delivers what is implied
    • Ensure that vendors present financial information to potential buyers transparently
    • Identify and focus attention on business factors critical to its future success
    • Governance and risk management objectives are met
  • Vendor assistance
  • Commercial and market due diligence
    • Understanding the specific performance of the intended target and how this relates to projected market conditions and its competition within a specific industry
    • Supporting valuation assumptions by considering the context in which the business operates and understanding the unique qualities of the sector a business is in
    • Considers the impact external factors may have on the future value of an acquisition (technology, customers, legislation, powerful buyers and the emergence of new
      geographic markets)
    • Validation of projected earnings to market data
    • Validation of projected earnings from the development of new products or markets