Financial Due Diligence

In the instance of a merger or an acquisition transaction, it is vital for the buyer to conduct a due diligence of the target company with respect to the historical and forecasted activities to gain clarity.  The scope of a financial due diligence includes analysis of the quality of financial earnings, quality of net assets, working capital requirements, capital expenditure requirements, financial debt and liabilities, reviewing major contracts and forecasted financial results.

Due diligence reports help purchasers assess, based on their risk profile, if there are any potential deal breakers, or if the price and structure of the acquisition is appropriate and if all appropriate representations and warranties are considered

Our team of experts, backed by solid industry experience, provide valuable information to support a fair purchase price and categorise the issues the purchaser and vendor should address to complete a successful transaction. Our independent viewpoint based on our expertise in the area will help the acquirer gauge a fair picture of the target company.

We help you in the following areas:

• Is the information provided by the vendor reliable?
• Are the historical earnings of the company sustainable?
• What are the potential future earnings of the company?
• What level of working capital should be included at transaction closing?
• Has the company sufficiently invested in capital expenditures?
• Are there any on or off-balance sheet liabilities that should be considered?
• Does the company have any future commitments or contingencies?