Any organisation considering a deal needs to check all the assumptions it is making about that deal. Financial due diligence provides peace of mind to both corporate and financial buyers, by analysing and validating all the financial, commercial, operational and strategic assumptions being made. It uses past trading experience to form a view of the future and confirms that there are no 'black holes'.
The components of the service are revenue, commercial and market due diligence, synergy validation, maintainable earnings, future cash flows and all operational issues, as well as deal structuring.
Commercial due diligence involves a comprehensive review of the company's business plan in the context of market conditions and the industry/competition.
Strategic reviews help companies formulate their corporate strategy and diagnose poor performance, providing a basis
Partner, PwC Italy