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Due Diligence

We provide assistance to clients on mergers and acquisitions, particularly with respect to financial due diligence, analysis of financial projections, cash flows, management information systems and internal controls.

Our approach to due diligence provides comprehensive and timely feedback for potential buyers and financiers. The provision of reliable information throughout a transaction is critical to its success. We keep clients informed with regular updates, interim presentations and final reports issued to agreed time scales. In addition, we provide valuations, financial modelling and advice on sale and purchase agreements to improve clients returns after completion.

Financial due diligence

Financial due diligence is a detailed investigation into a target business providing information to assist pricing decisions, transaction structure and post-deal implementation. The results are presented in a report to help potential buyers evaluate, and act on, the risks inherent in any transaction. Our reports can be used for a range of transactions including acquisitions, disposals, flotations and bank financing. Financial due diligence is an integral part of the investment appraisal process, and can also support the valuation and business plan analysis.

Due diligence reviews typically include:
  • analysis of historical trading, net assets and operating cash flows;
  • review of recent trading, last twelve month (LTM) analysis and comparison to previous years;
  • assessment of forecast performance including business model drivers, cash flow dynamics and working capital requirements;
  • identification of completion issues such as quantification of earnings and net dept analysis;
  • covenant reviews and headroom against facilities; and 
  • management reporting systems, IT capabilities and internal controls.