Financial Due Diligence
Financial Due Diligence Process (Buy Side)
When we act for buyers in a Merger & Acquisition deal, we plan and focus our financial due diligence process on ensuring the intended objectives of the buyers have the highest probability of success.
We analyse and validate financial and non-financial information, assessing the viability of assumptions made. We evaluate and report if revenue, earnings and future cash flows are sustainable. We also further ensure that any foreseeable operational issues after acquisition are highlighted, including potential challenges in anticipated synergies. We go beyond our due diligence work to explain the implications of our findings.
Our Due Diligence process covers:
- Holistically understanding the main motivations and aspirations of the potential investor in wanting to acquire the target business;
- Planning our work procedures to specifically address those areas of particular concerns from the buyer’s point of view;
- Assisting the buyer in establishing comprehensive and relevant requests for information, and agreeing on a realistic time schedule with sellers on the delivery of information;
- Performing detailed financial analysis, validating financial projections, holding detailed discussions with management, performing site-visits
- Keeping stakeholders updated regularly and promptly of our findings so that informed decisions and actions can be taken as the Due Diligence process progress
Financial Due Diligence Process (Sell Side)
When we act for vendors, we focus on showing a truthful report of the financial health to potential buyers. Our report will show the “normalised” past performance and project a sustainable future performance of the company.
Our vendor due diligence process centres on addressing the concerns that are relevant to purchasers so as to achieve a successful and prompt completion of the divestments.
Throughout the vendor due diligence process, we pay particular attention to and take pride in highlighting “hidden gems” and opportunities of the business as well as potential synergies that both vendor and buyer may not have been aware of in their initial negotiations.
Get insight into a company’s financial health
Through well-executed and robust due diligence, let us help you make an informed assessment of the financial benefits and risks involved in crucial transactions.
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